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.”

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White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

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Best Agent of the Year: Federico Pastorello

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Player Career Award: Ronaldinho

Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

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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.”

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A
Apple%20Mac%20through%20the%20years
%3Cp%3E1984%20-%20Apple%20unveiled%20the%20Macintosh%20on%20January%2024%3Cbr%3E1985%20-%20Steve%20Jobs%20departed%20from%20Apple%20and%20established%20NeXT%3Cbr%3E1986%20-%20Apple%20introduced%20the%20Macintosh%20Plus%2C%20featuring%20enhanced%20memory%3Cbr%3E1987%20-%20Apple%20launched%20the%20Macintosh%20II%2C%20equipped%20with%20colour%20capabilities%3Cbr%3E1989%20-%20The%20widely%20acclaimed%20Macintosh%20SE%2F30%20made%20its%20debut%3Cbr%3E1994%20-%20Apple%20presented%20the%20Power%20Macintosh%3Cbr%3E1996%20-%20The%20Macintosh%20System%20Software%20OS%20underwent%20a%20rebranding%20as%20Mac%20OS%3Cbr%3E2001%20-%20Apple%20introduced%20Mac%20OS%20X%2C%20marrying%20Unix%20stability%20with%20a%20user-friendly%20interface%3Cbr%3E2006%20-%20Apple%20adopted%20Intel%20processors%20in%20MacBook%20Pro%20laptops%3Cbr%3E2008%20-%20Apple%20introduced%20the%20MacBook%20Air%2C%20a%20lightweight%20laptop%3Cbr%3E2012%20-%20Apple%20launched%20the%20MacBook%20Pro%20with%20a%20retina%20display%3Cbr%3E2016%20-%20The%20Mac%20operating%20system%20underwent%20rebranding%20as%20macOS%3Cbr%3E2020%20-%20Apple%20introduced%20the%20M1%20chip%20for%20Macs%2C%20combining%20high%20performance%20and%20energy%20efficiency%3Cbr%3E2022%20-%20The%20M2%20chip%20was%20announced%3Cbr%3E2023%20-The%20M3%20line-up%20of%20chip%20was%20announced%20to%20improve%20performance%20and%20add%20new%20capabilities%20for%20Mac.%3C%2Fp%3E%0A
The bio

Academics: Phd in strategic management in University of Wales

Number one caps: His best-seller caps are in shades of grey, blue, black and yellow

Reading: Is immersed in books on colours to understand more about the usage of different shades

Sport: Started playing polo two years ago. Helps him relax, plus he enjoys the speed and focus

Cars: Loves exotic cars and currently drives a Bentley Bentayga

Holiday: Favourite travel destinations are London and St Tropez

The years Ramadan fell in May

1987

1954

1921

1888

Countdown to Zero exhibition will show how disease can be beaten

Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a  month before Reaching the Last Mile.

Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.

 

The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T

Price, base: Dh840,000; Dh120,000

Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo

Transmission: Eight-speed automatic; seven-speed automatic

Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm

Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm

Fuel economy, combined: 9.9L / 100km; 11.6L / 100km

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

Results

United States beat UAE by three wickets

United States beat Scotland by 35 runs

UAE v Scotland – no result

United States beat UAE by 98 runs

Scotland beat United States by four wickets

Fixtures

Sunday, 10am, ICC Academy, Dubai - UAE v Scotland

Admission is free

'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A

Directed by: Craig Gillespie

Starring: Emma Stone, Emma Thompson, Joel Fry

4/5

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

Scores

Scotland 54-17 Fiji
England 15-16 New Zealand

Cherry

Directed by: Joe and Anthony Russo

Starring: Tom Holland, Ciara Bravo

1/5

FIXTURES

All times UAE ( 4 GMT)

Friday
Saint-Etienne v Montpellier (10.45pm)

Saturday
Monaco v Caen (7pm)
Amiens v Bordeaux (10pm)
Angers v Toulouse (10pm)
Metz v Dijon (10pm)
Nantes v Guingamp (10pm)
Rennes v Lille (10pm)

Sunday
Nice v Strasbourg (5pm)
Troyes v Lyon (7pm)
Marseille v Paris Saint-Germain (11pm)

Updated: August 03, 2024, 2:32 PM