U.S. to expedite deep seabed mineral permits

NEW YORK - The U.S. government has announced a new Executive Order aimed at expediting the exploration and recovery of deep-seabed minerals, a move that could significantly impact domestic supply chains for critical minerals. The order, which instructs the Commerce Secretary to streamline the permit process under the Deep Seabed Hard Mineral Resources Act (DSHMRA), signals a renewed American focus on offshore resources. This development has already sparked investor interest in the sector, with InvestingPro data showing significant market movements in related stocks.

The Metals Company Inc. (NASDAQ:TMC), an explorer of seafloor polymetallic nodules with a market capitalization of $1.28 billion, has welcomed the order, which also directs the Department of Defense and Energy to evaluate the use of the National Defense Stockpile for minerals derived from these nodules and to consider revising domestic processing capabilities. The company’s stock has shown remarkable momentum, surging 229% year-to-date and currently trading near its 52-week high of $3.80.

This initiative is expected to mobilize substantial private investment across various industries in the U.S., including shipbuilding, ports, mineral processing, and advanced manufacturing. The Metals Company, through its U.S. subsidiary, The Metals Company USA LLC (TMC USA), is well-positioned to support this new industry and has been preparing to apply for licenses and permits under DSHMRA in the second quarter of 2025. According to InvestingPro analysis, while the company operates with moderate debt levels, investors should note that analysts don’t anticipate profitability this year. For deeper insights into TMC’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The Executive Order also includes directives for a joint assessment of an international seabed benefit-sharing mechanism, reflecting The Metals Company’s partnerships with Pacific Island nations like Nauru and Tonga.

The U.S. seabed mining code, established under DSHMRA and regulated by the National Oceanic and Atmospheric Administration (NOAA), is considered by the industry as an efficient and transparent pathway for permitting commercial recovery of deep-sea mineral resources. The regulatory process involves stakeholder consultation and environmental impact assessments to ensure decisions are based on robust scientific evidence.

The Metals Company’s CEO, Gerard Barron, has expressed confidence in the U.S. return to leadership in deep seabed minerals, highlighting the country’s historical role and the company’s commitment to responsible and economic commercial nodule projects.

This development follows TMC USA’s announcement last month about initiating a pre-application consultation process with NOAA, underscoring the company’s belief in the U.S. regulatory framework’s strength and predictability for commercial deep-sea mining activities.

The information presented in this article is based on a press release statement from The Metals Company Inc. With TMC’s next earnings report scheduled for May 7, 2025, and analyst price targets ranging from $4.00 to $4.50, investors seeking detailed financial analysis and additional ProTips can find comprehensive coverage on InvestingPro.

In other recent news, TMC the metals company reported its Q4 2024 earnings, showing a net loss of $16.1 million, or $0.05 per share, which aligned with analyst expectations. This marks a significant improvement from the previous year’s net loss of $33.5 million, or $0.11 per share. TMC is also pursuing permits under the U.S. mining code for deep-sea minerals, aiming to secure exploration licenses and commercial recovery permits under the Deep Seabed Hard Mineral Resources Act of 1980. The company has engaged with the National Oceanic and Atmospheric Administration and plans to submit applications in the second quarter of 2025. Additionally, TMC has expressed confidence in the U.S. regulatory framework, viewing it as a stable and transparent path for deep-sea mining. TMC’s strategic shift towards the U.S. framework is seen as a move to unlock new opportunities. The company’s liquidity remains strong, with $62 million on hand, which is sufficient for 12 months of operations.

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