Jeff Crank on China's Seabed Mining Dominance and US Critical Mineral Dependence

China's Control Over Seabed Mining Leases

• 🇨🇳 China currently holds the most exploratory leases issued by the International Seabed Authority, with five out of 22 granted leases.
• 🇷🇺 Russia also holds two leases, meaning nearly 30% of current exploration leases are controlled by US adversaries.
• 💡 This is a significant concern for national security, especially for those serving on the House Armed Services Committee.

US Dependence on Critical Minerals

• 🇺🇸 The United States is heavily reliant on China for the extraction, processing, and refinement of critical minerals.
• 📊 According to the US Geological Survey, the US is more than 50% net import reliant for nonfuel mineral commodities, with China being the largest supplier of 21 minerals.
• ⛏️ The Trump administration is committed to restarting domestic mining and reducing regulatory burdens that have hindered hard rock mining.

Offshore Mineral Exploration Strategy

• 🌊 An executive order was signed to unleash offshore mineral exploration and extraction.
• 💎 Polytallic nodules on the ocean floor contain high concentrations of key critical minerals, making offshore extraction a crucial part of a strategy to reduce reliance on China.

US Advantages in Seabed Mineral Extraction

• 📜 The United States retained its right to critical minerals on the seafloor by not participating in the UNCLOS treaty, establishing its own governing legislation in 1980.
• ⚡ This provides regulatory certainty for exploration and commercial recovery activities.
• 💡 There's an awakening to the reality of America's high dependence on adversaries for essential minerals like nickel, cobalt, manganese, and copper.

Countering China's Market Practices

• 📉 China's ability to dump minerals onto markets can undermine domestic mining projects, as seen with a cobalt mine in Idaho being forced to delay operations.
• 💰 However, processing materials on US soil can be cheaper due to abundant and available energy, which is the biggest cost input.
• ✅ Market factors can work themselves out when there is domestic supply, making it easier to protect domestic producers.