Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Pacific Island Forum Leaders Side Event (August 2024)
82 slides from Tmc The Metals's conference presentation, Aug 28, 2024
Slide 1: The Role of Pacific Island States in the Responsible Development of Marine Minerals
The Role of Pacific Island States in the Responsible Development of Marine Minerals Side Event Presentation to Pacific Island Forum Leaders August 28, 2024
Slide 2: Agenda
Agenda. 60 min Topic Presenter 10 min Introduction to TMC/NORI and rationale for deep- Gerard Barron, Chairman & CEO sea nodule collection 5 min Environmental & Social Impact Assessment Dr Michael Clarke, Environmental Program Manager 25 min What are the key environmental concerns? Dr Michael Clarke
Slide 3: Why nodules?
3 Why nodules? Polymetallic Far offshore Very deep High grades of four critical Far away from people, The deeper you go, metals: nickel, copper, cobalt no physical impact on the less life you will find. and manganese. communities. Unattached Portable No tailings, near No overburden to remove, no Onc
Slide 4: Very deep: abyssal plains contain less living biomass than deserts on land
4 Very deep: abyssal plains contain less living biomass than deserts on land. Source: Houghton, R. A., Hall, F., and Goetz, S. J. (2009), Importance of biomass in the global carbon cycle, J. Geophys. Res., 114, G00E03, doi:10.1029/2009JG000935.
Slide 5: Nodule composition is well suited for battery metal needs
5 Nodule composition is well suited for battery metal needs for decarbonized transport. Metal Metal contained value1 MANGANESE requirements 6.6 kg 7.1 kg 28% COBALT 11% 56 kg NICKEL 43% POLYMETALLIC SEAFLOOR NODULE 53 kg ELECTRIC CAR 18% COPPER 75kWh battery with NMC811 chemistry 1 Contained metal v
Slide 6: Nodule composition suited for infrastructure, defense and energy transition
6 Nodule composition is also well- suited for infrastructure, defense and the energy transition in general.
Slide 7: No toxic tailings: most of nodule mass can be turned into products
7 No toxic tailings: Most of nodule mass can be turned into products.
Slide 8: Nickel from NORI-D could have dramatically lower lifecycle impacts
8 Benchmark: Nickel from NORI-D could have dramatically lower lifecycle impacts including substantially lower CO2e emissions. Global Warming Potential Kilogram of CO2e emissions per kilogram of nickel in nickel sulfate Lowest impact value 102.0 64.4 29.2 28.5 19.2 13.9 8.0 6.2 Laterite Laterite Sulf
Slide 9: Regulated by the International Seabed Authority
9 Regulated by the International Seabed UNCLOS Parties Authority established UNCLOS Signatories in 1994 by UNCLOS. - The International Seabed Authority (ISA) was established in 1994 by the United Nations Convention on the Law of the Sea (“UNCLOS”) and regulates seabed minerals beyond national jurisd
Slide 10: Best mitigation is conservation: 43% of the CCZ already set aside
10 Best mitigation is conservation: 43% of the CCZ already set aside. 1.97m km2 under protection 1.28m km2 under exploration APEI-3 APEI-6 APEI-2 The High Seas APEI-10 APEI-12 APEI-13 Treaty agreed in APEI-1 June 2023 aims to protect 30% of the APEI-9 APEI-11 PROTECTED AREAS APEI-5 Areas of Particul
Slide 11: Nauru's sponsorship of NORI marked a watershed moment
11 Nauru’s sponsorship of NORI marked a watershed moment, setting the stage for Pacific Island states to lead the responsible Republic of Nauru Nauru Ocean Resources Inc. Kingdom of Tonga Tonga Offshore Mining Ltd. development of this industry. (NORI) (TOML) License Granted: 2012 License Granted: 20
Slide 12: Benefits for Sponsoring States
12 Benefits for Sponsoring States Capacity Building & Training Scholarships Internships Collaboration with leading scientists & research institutions Financial Benefits Economic diversification Annual Administration Fee Nodule Recovery Fee Taxation Contribution to combating climate cha
Slide 13: Proposed operations are located very far from any human communities
13 Proposed operations are located very far from any human communities, and from the states that will sponsor them.
Slide 14: Major economies and industrialized nations are following the Pacific
14 And where the Pacific leads, major economies and industrialized nations are following in its footsteps. The ISA approved a new plan of work US House allocated $2M in Two Chinese contractors recently for seabed mineral exploration defense funding to assess the launched stakeholder consultations Ju
Slide 15: NORI's exploitation application review process
15 NORI’s world-first exploitation application will undergo comprehensive due diligence by Nauru, followed by the ISA’s thorough one-year review process. Summary of ISA Exploitation Contract Application Submission and Review Process Nauru Due NORI SG checks for LTC reviews LTC rec. / Diligence Proce
Slide 16: ISA consolidated regulatory text and Mining Code timeline
16 After over a decade of negotiations and multiple drafts, the ISA has published a consolidated regulatory text and reiterated in their last four meetings that they are working with a view to adopting the Mining Code in 2025. Fiji requests the ISA to prepare workplan for adopting the Mining Code IS
Slide 17: Timeline for development of Mining Code driven by ISA Council
17 Timeline for development of Mining Code is driven by ISA Council, with support from other primary organs. Council (Norway as President) Assembly The publication of the consolidated regulatory text in February 2024 marked the transition to the final phase of ᠆ Supreme / political organ, comprised
Slide 18: Agenda
Agenda. 60 min Topic Presenter 10 min Introduction to TMC/NORI; why nodules and Gerard Barron, Chairman & CEO rationale for deep-sea nodule collection 5 min Environmental & Social Impact Assessment Dr Michael Clarke, Environmental Program Manager 25 min What are the key environmental concerns? Dr Mi
Slide 19: Thank you
Thank you. Contact Us communications@metals.co
Slide 20: The Role of Pacific Island States in the Responsible Development of Marine Minerals
The Role of Pacific Island States in the Responsible Development of Marine Minerals Side Event Presentation to Pacific Island Forum Leaders August 14, 2024
Slide 21: TMC's environmental program is the largest ever conducted in the deep-sea
21 TMC’s environmental program is the largest ever conducted in the deep-sea and brings together baseline and impact data from over 12 years of offshore research.
Slide 22: Environmental Impact Assessment process
22 We are currently assessing collected data and developing the world’s first EIS. Environmental Impact Assessment process Data Assessment EIS Development Data Assimilation Post Test Mining EIS Submission Test Mining Survey 11 years of offshore campaigns
Slide 23: Over 300 deep-sea exploration campaigns since the 1960s
Over 300 deep-sea exploration campaigns to the Area since the 1960s. Pre-ISA: 1960s-1994 ISA: 2001-2022 100+ campaigns 205 campaigns Total time spent on the water >9,000 days or ~25 years Source: The International Seabed Authority
Slide 24: >20 organizations engaged and >200 terabytes of data collected
24 >20 organizations engaged & >200 terabytes of data collected.
Slide 25: EIS based on one of the largest deep-sea datasets ever compiled
26 Environmental Impact Statement: based on one of the largest deep-sea datasets ever compiled. * Assuming the average length of a campaign to be 35-40 days, this represents over 4000 days.
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Slide 27: Big six concerns plus two extraordinary claims
29 ‘Big six’ concerns (+ two extraordinary claims) Seafloor plumes Midwater plumes Carbon Dark Oxygen “Seafloor plumes could “Midwater plumes could “Planet’s biggest carbon “Nodules produce oxygen travel 10,000s km2 beyond travel over a 1,000 km and sink could be disturbed.” through electrolysis” mi
Slide 28: What has been said about potential impacts of nodule collection?
30 What has been said about the potential impacts of nodule collection? “Plumes of sediment will be created as mining stirs up the seafloor, possibly spreading tens of thousands of square kilometers beyond the mining sites. The effect this will have on filter feeders such as corals and sponges is un
Slide 29: Seafloor plumes could spread 10,000s km2 beyond mining sites
31 Concern “Seafloor plumes could spread 10,000s km2 beyond mining sites.”
Slide 30: Offshore collector system: general arrangement
32 Offshore collector system: General arrangement. Platform for equipment handling and nodule processing 3 (surface vessel) Vertical transport system 2 (riser pipe) Seabed collector vehicle 1 Courtesy of Allseas
Slide 31: Plume monitoring during pilot mining test
6. RETURN WATER DISCHARGE OSV Island Pride SSV Hidden Gem MONITORING Safe operational working We monitored the distance 500m actual plumes during surfa pilot mining test. 1. FIXED MONITORING STATIONS (inc. moored ADCPs, hydrophones etc.) Hydrographic and non-trace metal operational and midwater plum
Slide 32: 50 monitoring stations around the test field
34 Pilot test area Fifty monitoring Collector test runs stations were deployed during the operations. 50 monitoring stations distributed in and around the test field to monitor and map the far field plume in situ. SEAFLOOR PLUME ARRAY - 7 x Fixed Landers with ADCPs, CTDs, OBS – optical backscatter -
Slide 33: DPT : 4278.8m 480143.s9Mppr : 4287. 9m HDG: 195.8°
DPT : 4278.8m 2 480143.s9Mppr : 4287. 9m HDG: 195.8° ALT : 1.6m ALT : 0.0m ECS and - © nd FTS-004 TMC _—_NORT-D DPT : 4275.7m : DPT, : 4285..3m 0.0m : 1141209. SALT, 5.0m FSP-001 Island Pride DGT) Asset Recovery, TMC = NORI-D HD14 - Dive 407MMUTC.18):28"39 ‘TMC
Slide 34: Slide 34
Slide 35: Biological Sampling
37 Biological Sampling. Total of 346 multicore and boxcore deployments plus >240 km of ROV/AUV transects targeted for megafauna analysis
Slide 36: UTC 05:01:12
0Y-12-2022 UTC 05:01:12 HDG: 335. TES ONS) SBC4i7,7) aM E 480282 .126 N: 1141810.241 Island Pride HDI4 —- Dive 464
Slide 37: DPT 4275.3m
DPT 4275.3m LT 4.7m E: 479667.352 N : 1142302.254 02-12-2022 TF-007-MCR2 MC205 Island Pride UTC 13:41:08 TMC HD14 - Dive 465
Slide 38: Monitoring stations registering plumes
40 Monitoring stations registering plumes.
Slide 39: The actual plume did not spread beyond the operating area
41 The actual plume did not spread beyond the operating area. DHI plume model video
Slide 40: Understanding the scale
Understanding the scale. Good enough for swimming Good enough for drinking Natural sedimentation level © DHI
Slide 41: Plume footprint constrained because it formed a gravity current
43 The main reason why the plume footprint was so constrained is because it formed a “gravity current”. “A turbidity current is a lateral, gravity-driven spreading of sediment-laden water under its own weight away from the collector tracks and not a case of the sediment being passively carried away
Slide 42: Seafloor sediment footprint is constrained vertically and horizontally
44 Seafloor sediment footprint is constrained vertically and horizontally.
Slide 43: Actual pilot test footage showing plume stays low
45 Actual pilot test footage showing plume stays low.
Slide 44: Campaign 8A Benthic Impact Survey Design – Spatial
46 Campaign 8A Benthic Impact Survey Design – Spatial. 1 4 2 5 3 6
Slide 45: What does the seafloor look like 12 months after nodule collection?
47 What does the seafloor look like 12 months after nodule collection?
Slide 46: Campaign 8A – megafauna
48 Campaign 8A – megafauna.
Slide 47: Campaign 8A – megafauna
49 Campaign 8A – megafauna.
Slide 48: Campaign 8A – megafauna
50 Campaign 8A – megafauna.
Slide 49: Environmental Impacts
51 ENVIRONMENTAL IMPACTS SLIDE USE DIFFERENT IMAGE 2m
Slide 50: Midwater plumes could travel over a 1,000 km
52 Concern “Midwater plumes could travel over a 1,000 km.”
Slide 51: Mid-water outlet
Mid-water outlet. , r F Fr aaa ; N | 21/10/2022 Trantna 21:41:32 | N: 1141837.2 ¥ E: 480397.0 = is - 20 40 4254.20 60
Slide 52: Modelled interaction of the plume with the disks
Impact of the interaction of the plume with the disks was also modelled by DHI.
Slide 53: Acoustic backscatter data on the midwater plume is encouraging
55 Acoustic backscatter data on the midwater plume is encouraging.
Slide 54: Midwater plume at various levels of dilution
56 Here is what the midwater plume looks like at various levels of dilution. Project’s PIs: Dr. Pablo Cornejo [MSET, UdeC], Dr. Andres Sepulveda [UdeC], Joaquim Bento [TMC]
Slide 55: What does the optical backscatter data tell us?
57 What does the optical backscatter data tell us? ᠆ Preliminary calibration of the optical backscatter data against water samples indicates that the maximum concentration recorded was 25mg/l with the bulk of measurements being less than 5mg/l. ᠆ The bulk of all above detection limit measurements ar
Slide 56: Preliminary Model Results
58 Preliminary Model Results. © DHI
Slide 57: Plume scale is very different to claims by activist groups
59 The scale of the plume is very different to claims put forward by activist groups. Source: Drazen, Jeffrey C., et al. "Midwater ecosystems must be considered when evaluating environmental risks of deep-sea mining." Proceedings of the National Academy of Sciences 117.30 (2020): 17455-17460.
Slide 58: Blue Peril
BLUE PERIL © Watch later S
Slide 59: The mid-water plume will impact commercial fisheries
61 Concern “The mid-water plume will impact commercial fisheries.”
Slide 60: Clarion Clipperton Zone (CCZ)
Clarion Clipperton Zone (CCZ) Nauru Distance to NORI-D Contract Area: 8,413 km Distance to TOML-F Contract Area: 8,292 km Tonga Distance to NORI-D Contract Area: 7,150 km Distance to TOML-F Contract Area: 7,050 km Exploration Areas (1.1 million km?) Exploration contract areas granted by the Internat
Slide 61: Papers speculating about mining impacts on fisheries
63 Two recently published papers put forward specific speculations about mining impacts on fisheries. “Our results show examples of developing nations that have their fisheries intersect with mining areas - to potentially a large extent as “The interactions between mining, fish exemplified by the co
Slide 62: Multiple papers point to low risks to fisheries due to operational depth
64 Multiple papers point to low risks to fisheries due to operational depth. “Tuna fisheries were classified as low risk during both exploration and mining phases for the three mineral types. This was largely due to a depth separation of most mining operations from the tuna fisheries, with DSM activ
Slide 63: Papers refuting speculated release of heavy metal toxins
65 Several papers have been published refuting speculated release of heavy metal toxins. “We conclude that processes like “There is currently no evidence that deep-sea mining are unlikely to cause dissolved metals would be released a release of toxic Cu2+ concentrations along with the sediments and
Slide 64: Midwater plume should not spatially interact with fisheries
66 Midwater plume—DSCC illustration Contrary to misleading illustrations, our mid- water plume should not spatially interact with fisheries. Co Cu+
Slide 65: Structure and depth of the pelagic food web are well understood
67 The structure and depth of the pelagic food web in the Central-Eastern Pacific are well understood. Madigan, Daniel J., et al. "Assessing niche width of endothermic fish from genes to ecosystem." Proceedings of the National Academy of Sciences 112.27 (2015): 8350-8355.
Slide 66: Planet's biggest carbon sink could be disturbed
68 Concern “Planet’s biggest carbon sink could be disturbed.”
Slide 67: Oceans are the biggest carbon sink but seafloor sediments host less than 5%
69 Oceans are the planet’s biggest carbon sink but seafloor sediments The global carbon cycle host less than 5% of Anthropogenic fluxes 2013-2022 average GtC per year the total oceanic Stocks GtC Carbon cycling GtC per year carbon sink. Fossil CO2 EFOS Land-use change ELUC Land uptake SLAND Atmosphe
Slide 68: Only 1.5% of carbon buried in sediments is on abyssal plains
70 Only 1.5% of total carbon buried in Organic carbon pools in surface sediments by depth sediments are found Percent of total ocean area by depth / Percent of total organic sedimentary carbon by depth on the abyssal plains Rise/plain (>2,000m) Slope (200-2,000m) Shelf (<200m) and rises—despite 100%
Slide 69: No meaningful mechanisms for abyssal carbon to reach the atmosphere
71 0-200m There are no meaningful MESOPELAGIC mechanisms for carbon 200-1000m in abyssal floor sediments disturbed by 1000m nodule collection to BATHYPELAGIC reach the atmosphere. 1000-3000m 2000m Observed data from in-field pilot tests show that 92-98% of mobilized sediment stays confined to below
Slide 70: Carbon bioavailability: shallow waters versus abyssal sediments
72 In shallow waters, Bioavailability of organic carbon for microbial conversion to CO2 carbon in sediments Percent of total organic carbon contained in surface sediments disturbed by bottom- 35 trawling is bioavailable for microbial conversion 30-100%* to CO2 – this is not the 30 case for abyssal s
Slide 71: Impact on microbial carbon sequestration service is trivial
73 Existing literature has also addressed impact of nodule collection on microbial carbon sequestration service: it’s trivial. A peer-reviewed paper published in 2020 that specifically focused on the impacts of different types of deep-sea mining (including nodule collection) on microbial ecosystem s
Slide 72: Two research papers in progress on carbon
74 Still, we are investigating this issue closely and have two research papers in progress. 0.01 ± 0.02 megatons CO2 per year BASELINE CARBON BUDGET FOR NORI-D AREA OF 25,160 KM2 Primary Production (PP) 3.89 ± 0.31 megatons of carbon per year Research papers in progress EUPHOTIC ZONE with the Univer
Slide 73: Claims on sediment plumes blocking sunlight and carbon sequestration
75 “[sediment plumes] blocking sunlight and reducing “deep sea mining could also impact the carbon sequestration photosynthesis” services” This is where photosynthesis occurs 1500 – 2000 m Mid-water plume 4000 m Benthic plume
Slide 74: Noise from operations could disturb whales' communications
76 Concern “Noise from operations could disturb whales’ communications.”
Slide 75: Behavioral effects on marine mammals noise threshold
77 Behavioral effects on marine mammals were assumed to occur above a threshold for root-mean-square broadband sound pressure levels (SPL) of 120 dB. The contour of 120 dB for the through depth maximum SPL level is shown. The distance between the source position and the contour is 3.8 km.
Slide 76: Alpha radiation from nodules is a health hazard
78 Extraordinary Claim “Alpha radiation from nodules is a health hazard.”
Slide 77: Alpha radiation from polymetallic nodules and potential health risks
www.nature.com/scientificreports scientific reports check tor updates OPEN Alpha radiation from polymetallic nodules and potential health risks from deep-sea mining Jessica B. Volz", Walter Geibert?, Dennis Kohler’, Michiel M. Rutgers van der Loeff* & Sabine Kasten®?? In search for critical elements
Slide 78: DSCC renewed calls for a moratorium after radiation paper
80 “The Deep Sea Conservation Coalition (DSCC) renewed its calls for a moratorium on deep- sea mining after a scientific paper was released warning of “alarmingly high” concentrations of radiation in polymetallic nodules which substantially exceed safe international levels.” (accessed 21/8/24) Sourc
Slide 79: Studies show radiation health risks from nodules are manageable
81 Studies have shown radiation health risks from nodules to be entirely manageable.
Slide 80: Nodules produce oxygen through electrolysis
82 Extraordinary Claim “Nodules produce oxygen through electrolysis”
Slide 81: Literature values of seafloor oxygen fluxes with nodules present
83 Literature values of seafloor oxygen fluxes with nodules present. ᠆ Three previous published studies used the same technique as Sweetman et al (2024) and did not detect oxygen production ᠆ These studies were not cited in Sweetman et al (2024) ᠆ Eddy covariance measurements conducted at the same l
Slide 82: Thank you
Thank you. Contact Us communications@metals.co
TMC the metals company — Pacific Island Forum Leaders Side Event (August 2024) on 6ix