What happened
The International Seabed Authority (ISA), a U.N.-established international organization, announced late Friday that a regulation framework for deep sea mining remains incomplete. The news comes after the ISA had met for two weeks in Jamaica with the intent to develop rules for deep sea mining companies such as The Metals Company (TMC -3.09%).
As of 10:39 a.m. ET, shares of The Metals Company are down 20.6%, a recovery from their earlier plunge of 33.5%.
So what
Failing to arrive at a final decision for deep sea mining regulations, the ISA announced that it will take up the matter again when it meets in November. While the agency failed to construct a firm set of rules for deep sea mining companies to follow, it stated that it sees a path forward and anticipates arriving at a final determination for regulations in 2025.
The ISA's failure to provide a clear framework comes to the chagrin of deep sea mining proponents. In response to the ISA's announcement, Gerard Barron, The Metals Company's chairman and CEO, stated: "It is now a question of when -- rather than if -- commercial-scale nodule collection will begin. ... I believe the finish line is now within sight and we look forward to the consolidated regulatory text at the next meeting in November 2023."
Now what
Although Gerard Barron tried to put a positive spin on the ISA's announcement, there's no doubt that deep sea mining enthusiasts are extremely disappointed. There has been a rising tide of opposition to the practice, and the ISA's delay means there's more time for deep sea mining opponents to plead their case that a moratorium on the issue is needed.
Additionally, the delay means more time that The Metals Company must stand idly by, leaving the strong demand for the production of battery metals to be met by traditional mining companies.
