Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — The Metals Company — Investor Day (May 2021)
101 slides from Tmc The Metals's investor day presentation, May 17, 2021
Slide 1: Revolutionizing the Mineral Supply Chain for Fast Growing EV Demand
Better Metals for EVs Revolutionizing the Mineral Supply Chain for Fast Growing EV Demand Analyst Day presentation, 17 May 2021
Slide 2: Disclaimer
2 Better Metals for EVs Disclaimer. This presentation is being furnished solely for the purpose of following: (i) conditions to the completion of the proposed business definitive written agreement relating to a transaction involving DGM, SPAC, DGM and the Placement Agents are free to conduct the con
Slide 3: Agenda
3 Better Metals for EVs Agenda. 90 min Area Presenter Presentation Introduction Scott Leonard, CEO of SOAC 10 min Company overview Gerard Barron, Chairman & CEO 15 min Valuation, project economics & financing Craig Shesky, CFO 10 min The ESG case for nodules Erika Ilves, Chief Strategy Officer 10 mi
Slide 4: DeepGreen Metals + SOAC
Better Metals for EVs DeepGreen Metals + SOAC =
Slide 5: Investment highlights
5 Better Metals for EVs Investment highlights. The world’s largest estimated source of battery metals Enough nickel, copper, manganese and cobalt in situ to electrify 280 million EVs1 Four battery metals in high concentrations in a single resource 3.2% nickel equivalent2 vs. 0.3-1.9% for the world’s
Slide 6: Business combination
6 Better Metals for EVs Business combination. The business - Founded in 2011, DeepGreen Metals, Inc. is the developer of the world’s largest estimated deposit of battery metals1—seafloor polymetallic nodules—with the lowest expected lifecycle ESG footprint on the planet and people2 Transaction size
Slide 7: Company overview
7 Better Metals for EVs Company overview Gerard Barron, Chairman & CEO
Slide 8: Video
8 Better Metals for EVs Video: https://vimeo.com/518772475
Slide 9: Using a rock to change the world
9 Better Metals for EVs Using a rock to change the world.
Slide 10: Better Metals for EVs: our mission
Our mission is to build a carefully managed metal commons that will be used, recovered, and reused again and again—for millennia. oo a} Nickel Sulfate 28 . Ni 58.693 [Ar]3d°4s?
Slide 11: EV revolution is metal intensive
11 Better Metals for EVs EV revolution is metal intensive. 85kg 56kg 7.1kg 6.6kg 29 28 27 25 CuCopper Ni Nickel Co Cobalt Mn Manganese 63.546 58.693 58.933 54.938 Metal requirements for a 75kWh battery with NMC cathode chemistry and average copper contents for electric harness and connectors. Differ
Slide 12: Four upstream challenges EV manufacturers should be worried about
12 Better Metals for EVs Four upstream Availability: Shortages expected Security: China dominates supply2 challenges EV manufacturers China’s share of production, 2019 Lithium, cobalt, nickel, manganese, cathode, anode & cells should be worried about. Mining Processing Cathode & Li-ion anode battery
Slide 13: Solving availability: in situ resource sufficient to electrify the U.S. car fleet
13 Better Metals for EVs Solving availability: in situ resource sufficient to electrify the entire U.S. car fleet. Exploration contract area NORI1 TOML2 Marawa Sponsoring state Republic of Nauru Kingdom of Tonga Republic of Kiribati Exploration area 74,830 km2 74,713 km2 74,990 km2 Technical resourc
Slide 14: Solving availability: nickel for nickel-rich battery chemistries
14 Better Metals for EVs Solving availability: nickel for nickel-rich battery chemistries. NORI-D project revenue by product2 29 Cu Copper 920,000 tonnes 63.546 13% Expected nickel supply deficit, 20301 27 28 Co 120,000 tonnes 12% Ni Cobalt 58.933 Nickel 46% Expected production, NORI-D2 58.693 ~500,
Slide 15: Solving security: localize onshore plants on any continent
15 Better Metals for EVs Solving security: we can localize our onshore plants on any continent.1 1 GSL Location Study prepared for the company. Locations selected based on access to deep-water port, access to renewable power and proximity to manganese and battery customers.
Slide 16: Solving price: second lowest-cost nickel producer
16 Better Metals for EVs Solving price: we expect to become the second lowest-cost nickel producer in the world.. Nickel C1 cost curve on a by-products’ basis1 C1 Cash Cost represents all direct costs, incl. mining, processing, freight, SGA minus revenue from by-products 10.0 5.0 C1 cash cost, $ / l
Slide 17: Solving ESG footprint
17 Better Metals for EVs Solving ESG footprint: we expect to be able to compress most of it. Land ores vs. nodules Resource use -75% -94% -89% +new use Ore Land Water Seafloor Climate change Habitat damage -70% -94% -100% -98% -99% -99% CO2e Stored carbon Solid Terrestrial Freshwater Eutrophication
Slide 18: World-class partners: why we can move faster
18 Better Metals for EVs World-class partners: why we can move faster than anyone else. OFFSHORE ONSHORE RESOURCE COLLECT SHIP PROCESS Invested in 2012. Holds offtake on NORI Area: 28 TECHNOLOGY DEVELOPMENT FLOWSHEET Ni Nickel 50% of production 58.693 Invested $70M in 2019-2020. Developing a pilot a
Slide 19: Key milestones ahead
19 Better Metals for EVs Key milestones ahead. 2011-today Funding ü ~$200M raised prior to the SOAC 2025— transaction - Commercial production: Resource P1, 10Mtpa nodules ü Exploration rights to three nodule - Contract: ISA-TOML areas in the CCZ - Permitting new areas and ü Canada & US standards com
Slide 20: Key business risks
20 Better Metals for EVs Key business risks. Resource Regulatory Social license Size & quality of resource Exploit. Regs—unworkable terms Calls for moratorium Security of access Exploit. Regs—delayed adoption Negative public perception Exploitation Contract—delayed grant Brands boycotting marine min
Slide 21: Board of Directors: independent and mission-aligned
21 Better Metals for EVs Board of Directors: independent and mission-aligned.* Gerard Barron Andrew Hall Eric Branderiz Scott Leonard Chairman & CEO Lead Independent Audit Committee Chair Nom & Gov Comm Chair Sheila Khama Riva Krut Christian Madsbjerg Andrei Karkar Compensation Sustainability Commit
Slide 22: Leadership team
22 Better Metals for EVs Leadership team. 26 people Working for The Metals Company ~250 people Working on the project incl. partners and contractors Gerard Barron Craig Shesky Tony O’Sullivan Erika Ilves Dr Greg Stone Chairman & CEO CFO Chief Development Chief Strategy Officer Chief Ocean Scientist
Slide 23: Valuation, project economics & financing
23 Better Metals for EVs Valuation, project economics & financing Craig Shesky, CFO craig@metals.co
Slide 24: Project economics: massive estimated resource leads to massive economic upside
24 Better Metals for EVs Project economics: massive estimated resource leads to massive economic Estimated resource upside. + Additional upside NORI2 TOML 3 Marawa Full portfolio1 Estimated resource $31.3B NPV 4 $6.8B NPV4 Resource: 1.6Bt Resource: 356Mt F Resource definition Production: 9.3Mtpa dry
Slide 25: Project economics: NORI-D planned production expected to reach ~$2 billion EBITDA
25 Better Metals for EVs Project economics – unleveraged1 Project economics: NORI-D planned production DISCOUNTED C A S H F L O W J A N 2 0 2 11 $6.8 billion expected to reach ~$2 billion Net present value at 9% discount rate in EBITDA in 2027. EST. ANNUAL REVENUE2 $4.7 billion EST. ANNUAL EBITDA2 $
Slide 26: Project economics: NORI-D high operating margins on conservative price assumptions
26 Better Metals for EVs Project economics: NORI-D high operating margins on NORI-D Financial Model conservative price $ billions unless otherwise noted assumptions with Prices significant upside. CRU forecast Current spot Delta Nickel $16,106/t $17,797/t 10% Copper $6,787/t $10,445/t 54% Cobalt $46
Slide 27: Valuation: NORI-D significant discount at its current valuation
27 Better Metals for EVs Valuation: NORI-D significant discount at its current valuation compared to trading levels of base metal producers. Market cap / fundamental value 1.7x 1.1x 0.8x 0.8x 0.7x Median: 0.7x 0.6x 0.6x 0.35x 0.2x 0.2x TheTMC Metals Ivanhoe Mines Western Areas Trilogy Metals Nevada
Slide 28: Valuation: traditional miners provide a long-term floor valuation
28 Better Metals for EVs Valuation: NORI-D traditional miners provide a long-term 55.0x floor valuation with 45.0x FV / EBITDA (CY+1) upside to more 35.0x disruptive peers in 25.0x 24.1x the EV value chain. 15.0x 14.7x median 18.2x 14.7x 13.6x 7.1x 5.0x 2.8x (5. 0x) The Metals TMC Base Metals EV Met
Slide 29: Project finance: Project Zero is already funded
29 Better Metals for EVs Project finance: Project Zero is Products Production4 already funded. Nickel 119 Kt Manganese 2,847 Kt Products Production1 Copper 89 Kt NiCuCo alloy 21Kt Cobalt 9 Kt Mn in silicate 331Kt Fertilizer 254 Kt PROJECT ZERO ~$193M PROJECT ONE ~$57.3billion ~$7.0billion 1.3Mt (wet
Slide 30: Project finance: NORI-D low CAPEX intensity and low OPEX compared to peers
30 Better Metals for EVs Project finance: NORI-D low CAPEX intensity and low OPEX compared to peers. Capital intensity 192,400 CAPEX in $US / average annual nickel equivalent tons produced1 Development Capex Sustaining Capex 153,600 92,800 99,400 82,200 82,900 63,300 140,100 53,900 42,600 113,600 37
Slide 31: Project finance: Project One in capital planning phase
31 Better Metals for EVs Project finance: Project One in capital planning $7billion CAPEX Pursue lower CAPEX options: phase, with - Offshore: convert more drillships instead of purpose build vessels CAPEX-light significant approach - Onshore: acquire distressed RKEF lines Use partners’ existing capi
Slide 32: Project finance: lower offshore CAPEX option for Project Zero and Project One
32 Better Metals for EVs Project finance: lower offshore CAPEX option achieved for Project Zero and can be used for Project One. Project Zero Project One Production vessel—conversion Production vessel—new build ~$200 million $1.3 billion Expected CAPEX CAPEX (incl. contingency) budgeted in the = NOR
Slide 33: Project finance: we can convert CAPEX into OPEX
33 Better Metals for EVs Project finance: we can convert CAPEX into OPEX $7billion CAPEX $503 revenue/dry ton = lower margin / Option: Commercial contracts higher ROE. $2.2billion Award long-term contracts at a fixed price per ton and shift offshore asset CAPEX to $197 offshore CAPEX contractor bala
Slide 34: Project finance: we can reduce onshore CAPEX by reducing scope
34 Better Metals for EVs Project finance: we can reduce onshore CAPEX by $7billion CAPEX reducing scope. $2.2billion offshore CAPEX $4.8billion onshore CAPEX - $2.8billion RKEF Lines (x4) Structures and substation, raw material handling, rotary kilns, calcine transfer, electric furnaces, converter a
Slide 35: Project finance: illustration of how we can finance onshore CAPEX with debt
35 Better Metals for EVs Project finance: ($mm) 2021 2022 2023 2024 2025 2026 2027 2028 2029 Illustration of Onshore capital spend $4,756 476 616 1,708 563 810 582 how we can Project-level equity / partners $1,756 200 150 200 560 190 265 191 Could be back-ended if finance onshore Government supporte
Slide 36: Project finance: precedents for non-dilutive financing
36 Better Metals for EVs Project finance: our capital plan has many precedents for Precedent examples of similar financing strategies non-dilutive financing. Royalty/ streaming Other EV Manufacturers Offtake financing Debt financing Base Metal Producers1 ECA-backed, project finance, Median LTM capit
Slide 37: The ESG case for nodules
37 Better Metals for EVs The ESG case for nodules Erika Ilves, Chief Strategy Officer
Slide 38: Primary metal mining is not sustainable
38 Better Metals for EVs Primary metal mining is not sustainable. Nickel laterites Polymetallic nodules 1-10 1-10 million years for million years for nickel laterite to form through a nodule to form through wet leaching of unweathered precipitation of metal that is in rock under rainforests solution
Slide 39: The ESG footprint of conventional metal production
39 Better Metals for EVs The ESG footprint of conventional metal production. Video: [private]
Slide 40: Structural challenges of land-based producers: things will get worse
40 Better Metals for EVs Structural challenges of land-based producers: things will get worse. Nickel & copper grades, fitted1 Falling grades More ore to get at the same amount of metal More land / energy / water use Falling grades x sharply rising demand = exponential increase in tailings Problemat
Slide 41: ESG impacts of producing metals for one electric vehicle
41 Better Metals for EVs Consider the ESG impacts of producing just 155 kg of metals for one electric vehicle today using conventional sources… 85kg 56kg 7.1kg 6.6kg 29 28 27 25 CuCopper Ni Nickel Co Cobalt Mn Manganese 63.546 58.693 58.933 54.938 Metal requirements for a 75kWh battery with NMC cath
Slide 42: You buy an EV and these ESG impacts
42 Better Metals for EVs You buy an EV and these ESG impacts. 155 kg *Include direct emissions from metal mining, processing & refining; release of carbon stored in vegetation, detritus & soil; and emissions from land use change Source: Paulikas et al, Where Should Metals for the Green Transition Co
Slide 43: Metal production from nodules can be much better
43 Better Metals for EVs Metal production from nodules can be Resource much better. High-grades of four metals in a single ore – much less ore mass to process Very low contents of hazardous elements – can turn 100% of mass into products Unobstructed access to nodules—no overburden to remove Loose si
Slide 44: The Abyssal Plain advantage
44 Better Metals for EVs The Abyssal Plain advantage: one of the lowest biomass & carbon sequestration environments on the planet. Biomass Contained carbon kg/m2 25 ~1,500x 20 20 15 Stable, food-poor environment 10 dependent on particles sinking from oligotrophic surface waters ~300x Very low biomas
Slide 45: Ethical labeling: Impact facts
45 Better Metals for EVs Ethical labeling: Impact facts what you buy when Cradle-to-gate production of nickel sulfate, manganese sulfate, cobalt sulfate and copper cathode Assuming NMC811 cathode chemistry and 75kWh battery size you buy a billion EVs. Serving size: 1 billion electric cars Land Nodul
Slide 46: Conflicting narratives: why good people are divided on deep-sea mining
46 Better Metals for EVs Better Metals for EVs Conflicting narratives: why good people are divided on deep-sea mining. “Intuitions come first, strategic Intuition reasoning second.” Mining has had devastating impacts on land. We must protect the oceans from mining. “People bind themselves into polit
Slide 47: Our approach to earning a social license
47 Better BetterMetals MetalsforforEVs EVs Our approach to earning a social license. “The human mind is a story processor, not a logic processor.” Tell better stories Analysis is a prerequisite but stories is how “Moral reasons are the tail wagged by the we interface with the world. Sometimes our in
Slide 48: Regulatory context
48 Better Metals for EVs Regulatory context Corey McLachlan, Head of Sponsoring State and ISA relations
Slide 49: International regulator with a clear mandate and 27-year track record
49 Better Metals for EVs International regulator with a clear mandate and a 27-year track record. “The deep-sea mining regime in the Mandate convention is the most innovative legal United Nations Law of the Sea Convention (UNCLOS), 1982 regime ever designed by humankind for the equitable and sustain
Slide 50: Exploration regime
50 Better Metals for EVs Exploration regime: similar to what you see on land but with a strong application of the precautionary principle. Exploration regulations Adopted in 2000, updated in 2013 - 15-year exploration contracts - 5-year work programs - Exclusive right to explore - Exclusive right to
Slide 51: Our exploration rights: three ISA exploration contracts
51 Better Metals for EVs Our exploration rights: three ISA exploration contracts… 2011 NORI 2011 TOML 2015 Marawa
Slide 52: Sponsored by three developing nations
52 Better Metals for EVs …sponsored by three developing nations. “Another first for the Authority was the approval of two applications by private sector interests, sponsored by developing States, for plans of Republic of Nauru work for exploration for polymetallic nodules in the so-called reserved 2
Slide 53: Exploitation regime: nearing completion and adoption
53 Better Metals for EVs Exploitation regime: nearing completion and adoption. Adoption was expected in July 2020 but COVID has delayed negotiation & adoption Exploitation Regulations - 4th draft released in 2019 / stakeholder comments in 2020 - Now with Council for final negotiation / Working Group
Slide 54: Exploitation contract: what we need to do to secure it
54 Better Metals for EVs Exploitation contract: what we need to do to secure it. Application Process ü Certificate of Sponsorship ü ü Mining Plan Financing Plan 45 days 120 days 60 days 90 days 315 days ü Environmental Impact Statement Secretary General will If no amendments Environmental Plans For
Slide 55: Exploitation regime: mitigating potential delay risk
55 Better Metals for EVs Exploitation regime: mitigating potential delay risk. Timeline July 2020 ISA stated goal for adoption—delayed due to COVID 2021-2022 Tentative new timeline for adoption Q2 2023 NORI plans to submit application for Exploitation Contract Mitigation Article 15 of the 1994 Imple
Slide 56: Project development: on time and on budget
56 Better Metals for EVs Project development: on time and on budget Tony O’Sullivan, Chief Development Officer
Slide 57: World-class resource: #1 largest undeveloped nickel project
57 Better Metals for EVs World-class resource: #1 largest undeveloped nickel project, with very high grades. World’s largest undeveloped nickel projects World’s largest nickel producers Total resources (inferred, indicated & measured), in Mt1,3 Total resources (inferred, indicated & measured), in Mt
Slide 58: World-class resource: with several advantages
58 Better Metals for EVs World-class resource: Nodule composition breakdown with several advantages. 25 0.70% Mn Manganese 54.938 29.20% 41.8% Hydroxide 29 Cu Copper 63.546 28 1.08% Ni 1.30% 8% Nickel 58.693 0.18% Fe 27 18% Co Cobalt Mg, Na, Al, Si 58.933 Unbound to the seafloor – no need for drilli
Slide 59: Advantageous location: onshore development optionality
59 Better Metals for EVs Advantageous location: Onshore development optionality, which is not available to most projects. APEI-3 APEI-6 APEI-2 APEI-1 APEI-9 APEI-5 NORI (sponsored by Nauru) APEI-4 APEI-8 APEI-7 Marawa (sponsored by Kiribati) TOML (sponsored by Tonga) Area of Particular Environmental
Slide 60: NORI-D on time and on budget to achieve commercial production in 2024
60 Better Metals for EVs Project development: NORI-D on time and on budget to achieve expected commercial production in 2024. we are here exploration planned production Exploration Contracts Initial Feasibility Project Zero Project One: and 43-101 resource Prefeasibility study (PFS) Assessment (IA)
Slide 61: Project development: key work streams
61 Better Metals for EVs Project development: key work streams. OFFSHORE ONSHORE PRODUCT RESOURCE COLLECTION PROCESSING BATTERY CATHODE DEFINITION SYSTEM SYSTEM MATERIALS REGULATIONS & EXPLORATION/ ENVIRONMENTAL PLANT SITE Mn SILICATE PROGRAM EXPLOITATION SELECTION PRODUCT CONTRACTS
Slide 62: Project development: achieved so far
62 Better Metals for EVs Project development: achieved so far. OFFSHORE ONSHORE PRODUCT RESOURCE COLLECTION PROCESSING BATTERY CATHODE DEFINITION SYSTEM SYSTEM MATERIALS ü 7 campaigns ü System design ü Flowsheet design with ü Offtakes with Glencore ü Maersk partnership ü Allseas partnership Hatch fo
Slide 63: Resource definition: easy and effective to define
64 Better Metals for EVs Resource definition: easy and effective to define. BOX CORE SAMPLING1 250 box cores collected2 82,000 kg (wet) nodules collected2 13,950 biological samples collected2 AUV CAMERA IMAGERY1 178,591 km2 of high-res bathymetric survey2 5,439 km2 detailed seafloor imagery2 1 Image
Slide 64: Video
65 Better Metals for EVs Video: https://vimeo.com/361863579
Slide 65: Technical report issued for a project in NORI-D
66 Better Metals for EVs Project economics: technical report issued for a project in NORI-D in May 2019, with SEC compliant SK 1300 update in March 2021. - Independently compiled by AMC in compliance with Canadian NI 43-101 standards - Offshore collection system design and costing by DRT with inputs
Slide 66: Remaining milestones to get NORI-D into production
67 Better Metals for EVs Project development: remaining milestones to get NORI-D into production. OFFSHORE ONSHORE PRODUCT RESOURCE COLLECTION PROCESSING NICKEL, COPPER, DEFINITION SYSTEM SYSTEM COBALT ü 5 years of Measured ü Wet test—Atlantic ü Pyromet pilot ü Project Zero: offtake Resource ü Pilot
Slide 67: Scaling up: from Project Zero to Project One
68 Better Metals for EVs Scaling up: Estimated nodules collected, processed & refined from Project Zero Millions of dry tonnes, NORI-D to Project One. 10.9 10.3 10.2 10.2 9.7 9.5 9.5 9.8 9.8 9.5 9.4 9.7 9.2 8.7 8.8 8.1 8.0 8.5 7.6 6.4 5.8 2.9 0.7 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 203
Slide 68: Greenfield vs. bluefield
69 Better Metals for EVs Greenfield vs. bluefield: delivering a nodule project on budget and on schedule is easier. Greenfield development Bluefield development Land mining Nodule collection Timeline from start PFS to 5-7 years 3 years production Capital intensity construction capital ~$60,000/t1 ~$
Slide 69: Collecting nodules from the seafloor
70 Better Metals for EVs Collecting nodules from the seafloor Jon Machin, Head of Onshore Engineering
Slide 70: Nodule collection system: subsea & surface assets
71 Better Metals for EVs Nodule collection system: requires several subsea & Bulk carrier surface assets. Production vessel & riser Support vessel Collector robots Source: Technical design studies & lab testing (DRT, Allseas 2015-2020); Offshore production system design, BIG October 2020.
Slide 71: A sense of scale: deploying collector from the surface vessel
72 Better Metals for EVs A sense of scale: deploying collector from the surface vessel. Source: Offshore production system design, BIG October 2020.
Slide 72: Proven technology
73 Better Metals for EVs Proven technology. 1970’s pilot testing in CCZ Present Day Offshore Diamond Mining De Beers, NAMCO, Samicor Kennecott Copper Corp Ocean Management Inc. British Petroleum, Rio Tinto-Zinc Corp International Nickel Company Consolidated Gold Fields Metallgesellschaft AG Noranda
Slide 73: Our design philosophy
74 Better Metals for EVs Our design philosophy. Design using only Find offshore Explore several 1 mature proven solutions to get into 2 partners with existing skills & 3 competing and/or complementary production as soon assets, share our IP solutions. as possible, improve to slash their from there.
Slide 74: Collection system: the ultimate design
75 Better Metals for EVs Collection system: the ultimate design. ü Plumeless ü Disturbs less than top 5 cm of sediment ü Lifts only nodules to the surface ü Generates zero CO2e, SOx & NOx ü Does not release marine carbon sinks
Slide 75: Allseas progress: base case pilot system developed
76 Better Metals for EVs Allseas progress: base case pilot On a fast track to reality system developed by our partner.
Slide 76: Allseas progress: lab testing ongoing
77 Better Metals for EVs Allseas progress: lab testing ongoing. An extensive testing program is currently competing tests in Deltares, Delft, and Allseas facility, Rotterdam Theoretic nodule pick-up efficiency of two alternative collector designs has been extensively validated (Hydraulic vs. Mechani
Slide 77: Allseas progress: visualization of nodule collection at lab scale
78 Better Metals for EVs Allseas progress: visualization of nodule collection at lab scale. NODULE PICKUP TRACKS RISER Play video Play video Play video https://www.dropbox.com/s/lox3i3n3e38s23f/Allseas_collector%20 https://www.dropbox.com/s/kelbc8fg5fwv49l/Allseas_collector%20track% https://www.drop
Slide 78: Development milestones: progressing on track
79 Better Metals for EVs Development milestones: Production vessel & riser: Drillship acquired 79 Conversion in progress Progressing on track. Collector robot: Procurement of long-lead items in progress 2015- Jan 2025- 2019 2020 2022 2024 2019 2022 2030 In-depth technical Technology downselects scop
Slide 79: From pilot to production: key risks & mitigation
80 Better Metals for EVs From pilot to production: key risks & mitigation. What might go wrong What we are doing about it Offshore system development Engaged Tier-1 international marine contractor cost / schedule overrun based on a fixed-fee performance based contract Offshore system breakdowns Exte
Slide 80: Marine environment: baselining & mitigating impacts
81 Better Metals for EVs Marine environment: Baselining & mitigating impacts Dr Michael Clarke, Environmental Program Manager
Slide 81: Life in the ocean: most life is found on land
82 Better Metals for EVs Life in the ocean: despite the large area of the ocean, most life is found on land. 3% 97% of biomass lives in of biomass lives the ocean on land Note: Ocean life is defined as marine life and deep-subsurface life but excluding 1.5GtC of life inside oceanic crusts as that li
Slide 82: Marine minerals: why we only focus on nodules
83 Better Metals for EVs Marine minerals: why we only focus on nodules. 3,800-5,500m depth 800-2,500m depth 1,000-4,000m depth The Abyssal Plains Seamounts Hydrothermal vents Polymetallic nodules Cobalt crusts Seafloor massive sulfides 2-30 cm diameter discrete rocks formed by dissolved 2-26 cm thic
Slide 83: The Abyssal Plain: most common biogeographical area
84 Better Metals for EVs The Abyssal Plain: the most common biogeographical area on the planet. >50% of Earth’s surface covered by Abyssal Plains More area in the CCZ is already under protection than under exploration Source: Craig R. Smith; Fabio C. De Leo; Angelo F. Bernardino; Andrew K. Sweetman;
Slide 84: The Abyssal Plain: home to less than 10% of ocean life
85 Better Metals for EVs The Abyssal Plain: home to less than 10% of ocean life. 28% of ocean life 65% of ocean life 7% Abyssal plain is a vast sedimentary seabed, oxic to 2m. of ocean life It has gentle depressions, troughs and ridges. There is intense pressure (5,700-8,500 psi) and no sound or Mos
Slide 85: The Abyssal Plain: home to a handful of fascinating wildlife
86 Better Metals for EVs The Abyssal Plain: home to a handful of fascinating wildlife. Megafauna photo credit: Amon et al. 21016 Meiofauna photo credit: C.R. McClain. 2010. An empire without food. Amer. Sci. 98(6)
Slide 86: Our impacts: what we worry about
87 Better Metals for EVs Support Production Bulk carrier Our impacts: vessel vessel what we worry about. Riser using airlift 1. Nodule removal 2. Sediment disturbance 3. Return water Some organisms need hard nodule surfaces for critical life Our collector robots expected to entrain and discharge Sea
Slide 87: ESIA program: 100+ studies
88 Better Metals for EVs ESIA program: 100+ studies working with some Seabed-to-surface ocean research program of the best research Surface biology institutions on the Surface fauna logbook (PelagOS) Remote Sensing, Hydrophone Acousitcs planet. Pelagic biology Microbial Community Characterization Ph
Slide 88: ESIA program: studies completed to date
89 Better Metals for EVs ESIA program: studies completed to date. Benthic campaign 5A Benthic campaign 5D Collector test, CCZ EIS submission to ISA we are were 2012-2020 2020 2021 2022 2023 Met ocean moorings Pelagic campaign 5B Pelagic campaign 5C Met ocean moorings ESIA Environmental and Social Im
Slide 89: Before production: system design choices to reduce impacts
90 Better Metals for EVs Before production: Support vessel Production vessel Bulk carrier system design choices to reduce impacts. Optimal Return Water Outlet Depth Riser ü Choose deposition depth based on using airlift least impact on life in water column ü Discharge outlet to maximize diffusion Ef
Slide 90: During production: we can adapt to mitigate impacts
91 Better BetterMetals Metalsfor forEVs EVs During production: we can adapt to mitigate impacts. Mitigating actions: ü Avoid ecologically sensitive areas ü Slow down to reduce plume ü Track plume direction ü Select size of nodules collected ü Leave seed areas untouched
Slide 91: After production: what happens after we leave the area
92 Better Metals for EVs After production: what happens after we leave the area. High variance in recovery rates among taxa, prevents predicting a general pattern of recovery or a sequence of successional stages at nodule fields (Gollner et al. 2017) Following our one-time seafloor Anticipated recov
Slide 92: Processing nodules into metal products
93 Better Metals for EVs Processing nodules into metal products Dr Jeff Donald, Head of Onshore Processing
Slide 93: Our products: four high value, critical products
94 Better Metals for EVs Our products: we plan to turn nodules into four high value, critical products. 28 27 29 25 Ni Nickel Co Cobalt Cu Copper Mn Manganese 58.693 58.933 63.546 54.938
Slide 94: Processing will take place in an onshore metallurgical plant
95 Better Metals for EVs Processing will take place in an onshore metallurgical plant.
Slide 95: Low risk flowsheet using conventional equipment, zero solid waste
96 Better Metals for EVs Low risk flowsheet: using conventional Converting is conventional in equipment and Dozens of Rotary Kiln - Electric Furnace (RKEF) plants processing nickel & copper processing. Sulfidation step operated generating zero nickel laterites in China, Indonesia, commercially by So
Slide 96: Zero solid waste: how we achieve it
97 Better Metals for EVs Zero solid waste: how we achieve it. We select plant sites based on proximity to markets for by-products We start with nodules that have remarkably low levels of harmful elements Dual pyro / hydro process allows for We select reagents that residues to be recycled to smelter
Slide 97: The alternative: deforestation and unmanaged production waste
98 Better Metals for EVs The alternative: deforestation and unmanaged production waste. NICKEL MINING IN INDONESIA.
Slide 98: Flowsheet development: working with best-in-class service providers
99 Better Metals for EVs Flowsheet development: working with best-in- class service providers. Calcining Smelting, converting & sulfidation Pilot Kiln & Ancillary Systems 300kW DC Furnace & Ancillary Systems Whitehall, PA, USA Sudbury, ON, Canada Participation to ensure data for engineering delivera
Slide 99: Achievable timeline: focus on systematic de-risking
100 Better Metals for EVs Achievable timeline: Focus on systematic de-risking. 2011- 2020- 2025- 2019 2024 2018 2021 2030 Hydromet flowsheet developed and lab- 20 kg 75 tonnes 1.3 Mtpa (wet) 11.3-54.5Mt (wet)1 New lower cost & risk flowsheet Pilot plant program with Project Zero - small scale Tollin
Slide 100: From pilot plant to production: key risks & mitigation
101 Better Metals for EVs From pilot plant to production: key risks & mitigation. What might go wrong What we are doing about it Technology risk Employ conventional equipment with analogous commercial precedence, project development according to established procedures (test work, pilot, engineering)
Slide 101: Thank you
Better Metals for EVs Analyst and Investor Contact craig@metals.co Thank you. Media Contact media@metals.co Follow us