The island of Palau is opposed to deap-sea mining. Getty Images
The island of Palau is opposed to deap-sea mining. Getty Images
The island of Palau is opposed to deap-sea mining. Getty Images
The island of Palau is opposed to deap-sea mining. Getty Images

Deep-sea mining's future rests on crucial vote


Tariq Tahir
  • English
  • Arabic

Update: Leticia Carvalho won the election on August 2

A crucial vote for the next head of a UN-affiliated body that plays a key role in the future of the world's oceans is due to take place on Friday.

The winner will be able to steer the timing of deep-sea mining of metals essential for batteries in products such as electric cars.

The vote has divided opinion in Pacific island nations over how the seas should be treated and led to mud-slinging between opposing camps.

Michael Lodge, 64, a lawyer from the UK, is seeking re-election as secretary general of the International Seabed Authority (ISA), which is based in Kingston, Jamaica. It is governed by 168 member countries plus the European Union, with a mandate to authorise and control mining “for the common heritage of all mankind” and to protect the marine environment from harm.

Mr Lodge, who is keen to finalise regulations that would kickstart the potentially multibillion-dollar industry, is pitted against a rival who favours a more cautious approach.

Leticia Carvalho, a 50-year-old Brazilian ocean scientist and UN official, says finalising the regulations may take years of further negotiations to protect the deep sea from the most harmful effects of mining.

Reserves of metals are estimated to be worth anywhere from $8 trillion to more than $16 trillion, much of them at the bottom of the Pacific, but nations are split between those opposed on environmental grounds and others that see the economic benefits.

At the sharp end of this debate is the tiny nation of Palau, which has a population of only 18,000 people, where sea levels are set to rise throughout this century. It is regularly battered by surging storms and its coral reefs are dying.

Surangel Whipps, President of Palau, which wants a halt on deep-sea mining, told The National he believes Mr Lodge's re-election would prompt an acceleration in deep-sea mining, leading to a potentially devastating environmental impact on his nation.

“In our view, we see he's very pro-mining,” he told The National in an exclusive interview.

Palau's President Surangel Whipps addressing a UN climate change conference. Getty Images
Palau's President Surangel Whipps addressing a UN climate change conference. Getty Images

After running unopposed in 2020, Mr Lodge has overseen more than 1.3 million square kilometres of seabed exploration by private and state-backed metals companies. So far 31 licences have been awarded to explore the oceans for minerals.

“We can only assume that is going to continue,” said Mr Whipps.

He said Mr Lodge should be commissioning more scientific studies to ensure deep-sea mining does not harm the environment.

“As a small-island developing state, we are the front line of climate change. We think we need to look at all the scientific information,” he said.

He described Ms Carvalho as “a great candidate” and added: “I think ISA is at a point where it needs somebody that can bring more transparency and better governance. Change is good.''

Island legend

For the President of Palau, the debate is more than about economics, it concerns his nation’s deep cultural relationship with the environment.

He cited the example of Palau in the 1970s, when there was a proposal to build a huge port and oil storage depot on the island, which would have brought substantial wealth but was ultimately rejected due to its potential environmental impact.

"Fortunately, those young people at that time, my father among them, were able to stand up and say ‘this is this not good, we have to do better, we have treasures down there that we need to protect, not only for us but for our children’,” he said.

“You know, in the Palauan legend of the creation, we came from the sea. So culturally, we're an ocean people.”

Michael Lodge is seeking re-election as secretary general of the International Seabed Authority. Photo: International Maritime Organisation
Michael Lodge is seeking re-election as secretary general of the International Seabed Authority. Photo: International Maritime Organisation

Palau has been vocal in its calls for a moratorium on deep-sea mining and was the first nation to sign a UN High Seas Treaty, which states activity in oceans can take place only if it is consistent with conservation objectives.

Mr Whipps addressed last year's Cop28 climate summit in the UAE, which included a day of talks devoted to nature, land use and oceans, to make a plea for protecting the seas.

“Our ocean feeds us, protects us and defines us. We must protect it in return,” Mr Whipps told leaders in Dubai. “A healthy ocean is a healthy planet.”

Island leaders left the summit with $225 million in seed funding for a Pacific conservation plan, from donors including the Bezos Earth Fund.

The final text agreed at Cop28, known as the UAE Consensus, invites countries to “preserve and restore oceans and coastal ecosystems” as part of their national 'go-green' plans.

Engineers inspect the tracks of a deep-sea mining vehicle. Photo: The Metals Company
Engineers inspect the tracks of a deep-sea mining vehicle. Photo: The Metals Company

Mining industry plans

Under the most common type of mining, contractors such as Canada’s The Metals Company (TMC) hope to use remote-controlled machines the size of lorries "to scoop up rocks sitting on the sea floor".

These rocks, known as polymetallic nodules, are crushed and processed to release metals such as cobalt, manganese and nickel, which are found in lithium-ion batteries used in everything from vapes to laptops, from mobile phones to, perhaps most crucially, electric cars.

Scientists last month published findings that polymetallic nodules found in one of TMC’s mining areas actually produce a type of oxygen known as "dark oxygen", an extraordinary discovery some ISA delegates say means mining efforts should decelerate.

Mr Lodge has pushed to finish the so-called Mining Code as soon as this year, ahead of the ISA’s official 2025 target to adopt new regulations.

But environmental organisations, including Greenpeace and World Wide Fund for Nature (WWF), oppose deep-sea mining, while 27 nations support a precautionary pause, moratorium or ban.

Carbon reservoir

According to the International Union for Conservation of Nature, deep-sea mining can cause disruption of the ocean floor, which is by far the largest carbon storage reservoir on Earth.

This can lead to reduced carbon removal as well as the release of large amounts of the potent greenhouse gas methane, exacerbating the climate crisis.

Razan Khalifa Al Mubarak, president of the International Union for Conservation of Nature and UN Climate Change High-Level Champion for the leadership team of Cop28, recently described the oceans as the "lungs" of the Earth.

The WWF says deep-sea mining presents an unacceptable risk to marine life.

Mr Whipps said as well as being vulnerable to rising sea levels, his nation also depends on the ocean for fishing, to feed itself and for exports.

He singles out the Clarion-Clipperton Zone, and area of 1 million square kilometres in the Pacific – where 16 deep-sea mining companies have been awarded contracts for exploration – to warn of the effect deep-sea mining could have.

“We have to be careful about what we're doing. The size that they want to rip up is huge," he said.

“We also know that whatever happens in one part of the Pacific has an impact on the other part and the way they're proposing the deep-sea mine could have catastrophic impacts to all of us.

“It’s our shared backyard, it belongs to all of humankind and to those of us that live in the Pacific.”

While Palau, along with Tuvalu and Vanuatu, are sceptical about deep-sea mining, other Pacific nations such as Kiribati have embraced what they see as its potential.

The Pacific archipelago, which has a population of 120,000 scattered across 32 tropical atolls, has its own mining company which holds an ISA contract to explore and potentially mine 75,000 square kilometres of the Pacific seabed.

Leticia Carvalho is running against Michael Lodge to head the ISA. Photo: Leticia Carvalho / X
Leticia Carvalho is running against Michael Lodge to head the ISA. Photo: Leticia Carvalho / X

Separately, Kiribati, Nauru and Tonga have teamed up with The Metals Company, which says it will apply for permission to mine later this year.

In a twist that has injected controversy into the ISA race, Kiribati nominated Mr Lodge, after his former backer, the UK, withdrew support after it had sponsored him for two terms, which he has completed.

He has been the public face of the ISA for decades, joining as legal officer in 1996 and rising to deputy secretary general before being elected to the top post in 2016.

The nation has stated its support for him based, in part, on his commitment to finalising international mining regulations so commercial exploration of cobalt, nickel and other metals in the deep sea can begin.

Pacific divide

Ms Carvalho's pitch is as the first woman and scientist to potentially lead the ISA.

The former federal environmental regulator and an official with the UN Environment Programme in Nairobi says her priorities as secretary general would be transparency and accountability.

She claims she was offered a senior position in the ISA by Teburoro Tito, Kiribati’s UN ambassador, in return for dropping out of the race. He maintains it was merely “a suggestion”.

Ms Carvalho has also made claims about Mr Lodge, including that he used his position inappropriately to campaign.

Mr Lodge has not spoken about his candidacy but in a statement to Bloomberg he said the allegations against him "lack any probative weight and persuasive force".

Mr Lodge has been approached separately by The National through the ISA.

Mr Whipps is scathing about the secretary general’s association with Kiribati.

"I'm glad that the UK understands that their term is up and they're not putting his name forward again. It's unfortunate Kiribati is now taking up his name.

“He has already served his time and so his term is up.”

Many environmental NGOs such as Greenpeace is opposed to deep-sea mining. Photo: Greenpeace
Many environmental NGOs such as Greenpeace is opposed to deep-sea mining. Photo: Greenpeace

Andrew Thaler, a Maryland-based deep-sea scientist and consultant who closely follows the ISA, said the new secretary general will have an "enormous" role to play, as the commercialisation of deep-sea mining is being held up by the stalled finalisation of regulations.

He said several nations believe Mr Lodge is on the side of the mining contractors.

Mr Thaler said Mr Lodge has “a preference towards commercial deep-sea mining as quickly as possible”.

“It certainly seems like he very much views it as his legacy as the secretary general to be the person who gets the mining code done during his tenure,” he said.

But while there maybe two different approaches by the candidates, he said: “I don't see a conceivable path where it would be put on ice.”

PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

South Africa squad

: Faf du Plessis (captain), Hashim Amla, Temba Bavuma, Quinton de Kock (wkt), Theunis de Bruyn, AB de Villiers, Dean Elgar, Heinrich Klaasen (wkt), Keshav Maharaj, Aiden Markram, Morne Morkel, Chris Morris, Wiaan Mulder, Lungi Ngidi, Duanne Olivier, Vernon Philander and Kagiso Rabada.

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Indoor cricket in a nutshell

Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP

Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan

Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri

Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics

 

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix

GP3 qualifying, 10:15am

Formula 2, practice 11:30am

Formula 1, first practice, 1pm

GP3 qualifying session, 3.10pm

Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The biog:

From: Wimbledon, London, UK

Education: Medical doctor

Hobbies: Travelling, meeting new people and cultures 

Favourite animals: All of them 

The biog

Favourite food: Tabbouleh, greek salad and sushi

Favourite TV show: That 70s Show

Favourite animal: Ferrets, they are smart, sensitive, playful and loving

Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can

Name of first pet: Eddy, a Persian cat that showed up at our home

Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big

Thor: Ragnarok

Dir: Taika Waititi

Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson

Four stars

COMPANY PROFILE

Company name: SimpliFi

Started: August 2021

Founder: Ali Sattar

Based: UAE

Industry: Finance, technology

Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

COMPANY PROFILE

Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

Updated: August 03, 2024, 2:32 PM