Regulating the Depths: One International Step Back, and a National Step Forward for the Industry?

NOAA Updates its Rules for Seabed Mining Licenses and Permits

On 7 July 2025, NOAA proposed changes to its Deep Seabed Mining exploration and commercial recovery rules, inviting comments through 5 September 2025.¹

The central proposal introduces a consolidated licensing and permitting procedure, enabling qualified U.S. applicants to apply simultaneously for both an exploration license and a commercial recovery permit. Under the current framework, applicants must first obtain an exploration license and only later apply separately for a commercial recovery permit. The proposed changes aim to streamline this process by allowing for a single, integrated application and review, which could in turn significantly reduce administrative delays.

This consolidated procedure had been anticipated since the regulations were first promulgated in 1986, with NOAA previously signalling that such a framework would become appropriate as the deep seabed mining industry matured.²

Key features of the proposed consolidated framework include:

• Single Review Process: NOAA would conduct one comprehensive review, rather than two sequential processes, and issue separate but simultaneous decisions on the license and permit.
• Environmental Review: NOAA would likely prepare a single Environmental Impact Statement assessing the aggregate impacts of both exploration and commercial recovery activities.
• Concurrent Issuance: Upon approval, the exploration license and commercial recovery permit would be issued at the same time, securing the applicant’s priority rights and enabling commercial recovery once exploration is complete.
• Term Lengths Unchanged: The term durations — 10 years for exploration licenses and 20 years for commercial recovery permits — remain the same, as do the provisions for extensions under existing DSHMRA regulations.

Once the license and permit are granted under the consolidated process, the holder would be authorized to commence commercial recovery activities upon completing any planned exploration. NOAA’s proposal aims to enhance regulatory clarity and efficiency, better aligning U.S. permitting practices with the operational needs of the evolving industry.

To qualify for the consolidated procedure, applicants must submit detailed documentation demonstrating their readiness to engage in both exploration and commercial recovery. Required submissions include:³

• Description of past exploration activities
• Statement of financial resources
• Statement of technological experience and capabilities
• Exploration Plan
• Commercial Recovery Plan
• Environmental and use conflict analysis
• Vessel safety and documentation
• Statement of Ownership
• Antitrust Information
• Fee of $350,000
• Information required by 15 CFR § 971.408 if the permit proposes mineral processing outside the U.S.

None of these requirements are substantively different than those in NOAA’s current regulations. What has changed, though, is the maturation of the deep-sea mining industry, where applicants may not need to undertake extensive exploration activities before commencing commercial recovery. Under NOAA’s current regulations, the step of securing an exploration license is what gives an applicant priority of right in an area. NOAA states that companies have expressed a readiness for commercial recovery, and the proposed rule is intended to allow those companies to secure their priority of right and secure permits for commercial recovery concurrently.

Notably, any application must include at the outset a full technical description of all equipment, technologies, and methods for each stage of the mining process, ranging from nodule collection and retrieval to processing and waste disposal. This represents a rigorous evaluation of the entire deep-sea mining supply chain which previously was only required when a company had completed its exploration activities. Industry representatives may want to submit comments on this requirement based on their own experience of establishing a full supply chain, including their efforts in securing appropriate extraction and support vessels, and access to handling and processing facilities.

NOAA stated that it was updating the Deep Seabed Mining exploration and commercial recovery rules to “reflect significant technological and information changes” since the 1980s. The proposed amendments re-use the language of the original text which focused on ‘nodules’. NOAA has now the opportunity to modernise and clarify the framework by acknowledging the three main types of seabed mineral resources: polymetallic nodules, cobalt-rich ferromanganese crusts and seafloor massive sulphides. Whilst the proposed amendments are mostly technology-neutral, one particular requirement for example, “[a] general description of the recovery and processing technology related to the proposed license and of any planned testing and evaluation of such technology addressing such factors as nodule collection technique, seafloor sediment rejection subsystem, mineship nodule separation scheme, pumping method, anticipated equipment test areas, and details on the testing plan”⁴ would not cover comfortably the recovery technology for cobalt-rich ferromanganese crusts, which are not collected and separated from sediment through riser systems, but instead mechanically cut or ground off hard volcanic substrates. The need to reflect the distinction between the different seabed mineral resources in the regulations is also particularly important as each resource faces different technical and environmental challenges. For example, the main challenge in the collection of polymetallic nodules is sediment plumes, whereas for cobalt-rich crusts it is the risk of crust adhesion or precision cutting, and for seafloor massive sulphides it is the risk of vent ecosystem damage or dispersion of toxic materials. NOAA has the opportunity to capture and address the different financial, technical and environmental demands of each of these seabed mineral resources.

One of the key uncertainties in the proposed rule concerns the extent of exploration activities required under the consolidated process. The background to the proposed amendments to the regulations notes that circumstances exist where later entrants can capitalise on the information gained by previous explorers and this lessens the need for further exploration. Further, the preamble to the rule suggests that a contractor may proceed to commercial recovery “at any time after [NOAA] issues the license and permit”, implying minimal required exploration.

However, the proposed rule also maintains that, with limited exceptions, the regulatory standards in 15 CFR Parts 970 and 971 will continue to apply. This includes 15 CFR § 970.602, which obligates applicants to:

• “Diligently” pursue activities set forth in their exploration plan; and
• Structure the exploration plan to demonstrate an ability to apply for a commercial recovery permit by the end of the 10-year exploration license term.

Finally, in its regulatory impact analysis, NOAA concludes that the proposed amendments are unlikely significantly to affect the broader market, citing the high technological, capital, and operational barriers to entry in deep-sea mining. NOAA estimates that only seven businesses would be affected by the changes and anticipates no more than ten applicants over the next ten years.

Interestingly, NOAA also forecasts an average of two new exploration applications, one commercial recovery permit application, and one consolidated license/permit application per year.⁵ This projection appears disproportionately high, given the limited number of entities currently capable of meeting the proposed requirements. The estimate may reflect a combination of the Trump administration’s optimism about advancing activities in this space, the broader upward trend in industry development, and possibly insights gained from NOAA’s consultations with potential applicants.

ISA Council goes ahead with the second part of its 30th session of ISA Council

The second part of the 30th session of the Council took place from 7 to 18 July 2025.⁶ The session opened with a highly anticipated address by ISA Secretary-General Ms Carvalho, whose remarks drew particular attention following recent developments involving the United States. In her speech, Ms Carvalho echoed the warning of UN Secretary-General António Guterres that “the deep seabed cannot become the Wild West.”⁷ She underscored the importance of finalising a robust international regulatory framework to prevent unilateral regulations which she says risk undermining international agreements governing conduct on the high seas.

During the session, delegates resumed negotiations on the draft exploitation regulations, successfully completing a second reading. In addition, the discussion touched upon the model for the equalisation measure. The informal working group on the equalisation measure considered two equalisation options: a hybrid model, where contractors that receive tax exemptions or subsidies pay an additional 8% royalty to the ISA, against which payments to the sponsoring State are creditable; and a profit share option, where contractors pay 25% of their profit to the ISA, from which royalty payments to the sponsoring State and all mining payments by related entities are credited. Most Council delegates expressed support for the profit-share model, viewing it as more equitable and administratively straightforward.

The Legal and Technical Commission (“LTC”) briefed the Council’s delegates on their work reviewing the Contractors’ annual reports on activities carried out in 2024.⁸ The LTC noted that most contractors had undertaken limited offshore exploration work — including environmental studies and sampling — focusing primarily on desktop research and data analysis. Contractors cited several reasons for this, including the absence of a finalized regulatory framework for exploitation, prevailing global economic uncertainty, and the lack of established industry best practices.

Council delegates also considered inspection-related provisions under the United Nations Convention on the Law of the Sea (“UNCLOS”). Article 153(5) of UNCLOS authorizes the ISA to inspect installations in the Area to ensure compliance with international law, ISA regulations, and contractual terms. The Council debated Regulation 96 ter, specifically who should have the right to request inspections. While some delegates advocated for limiting this right to coastal or adjacent States, others supported allowing any State with a credible basis to initiate inspection requests. The latter option, however, raises concerns about potential overexposure of contractors and sponsoring States to a high volume of inspection requests, including those that may be disingenuous or tactically motivated to disrupt contractors’ operations.

On 18 July 2025, the Council endorsed a revised standardized procedure for Regional Environmental Management Plans (“REMPs”), expanding them to cover exploration impacts and triggering REMP reviews for new mineral types — supported by nations like Portugal, China, India, and Canada. Finally, the Council tasked the ISA Secretariat with publishing a consolidated updated draft of the Exploitation Regulations. This draft will reflect the deliberations from the July session and present a ‘clean text’ for future consideration.

During the third and final week of the Council’s session, discussions focused on jurisdiction over the seabed, ocean floor, and subsoil beyond national jurisdiction — collectively referred to as “the Area.” Members of the ISA’s Assembly nearly unanimously reaffirmed that UNCLOS and the ISA hold exclusive authority over all matters concerning the Area.

The debate centered on unilateral actions taken by TMC USA and the US Government outside the ISA framework. Brazil emphasized the need to uphold the integrity of contractual obligations under the ISA. It reiterated the Council’s request for the Secretary-General to investigate whether The Metals Company — TMC USA’s parent company and an ISA exploration contractor — is in breach of its contractual commitments under the ISA framework.

In response, the US referred to its written submission to the Secretariat and reiterated its longstanding position that only those UNCLOS provisions concerning traditional ocean uses — such as freedom of navigation and overflight — reflect customary international law binding on all States.⁹ The U.S. emphasized that this excludes Part XI of UNCLOS, which governs the Area, and the 1994 Implementing Agreement. As a non-party to UNCLOS, the US maintained that it is not bound by UNCLOS provisions on deep-sea mining. The U.S. also cited former President Ronald Reagan’s 1983 statement following UNCLOS’ adoption: “Deep seabed mining remains a lawful exercise of the freedom of the high seas open to all nations.”

In response, China, supported by Brazil and France, underscored that the principle of the common heritage of humankind is widely accepted by the international community. They pointed to the absence of opposition to its declaration in UN General Assembly Resolution 2749 (1970), highlighting its enduring relevance.

The outcome of the Council’s investigation into The Metals Company is expected to serve as a key signal to the broader deep-sea mining industry regarding how the ISA will approach companies operating with both ISA contracts and licenses in the Area granted under unilateral domestic regimes.

¹ NOAA, Proposed Rule, Deep Seabed Mining: Revisions to Regulations for Exploration License and Commercial Recovery Permit Applications. These revisions would apply to NOAA’s existing regulations located at 15 CFR. Parts 970 and 971.

² Deep Seabed Mining; Proposed Regulations for Commercial Recovery and Revision of Regulations for Exploration, 51 Fed. Reg. 26794, 26796 (July 25, 1986).

³ The consolidated license and permit process is subject to all requirements of 15 CFR parts 970 and 971, other than §§ 970.200 through 970.208, 970.400 through 970.408, 971.200 through 971.210, and 971.300 through 971.303 which relate to application contents and application certification.

⁴ https://www.federalregister.gov/d/2025-12513/p-122.

⁵ Deep Seabed Mining: Revisions to Regulations for Exploration License and Commercial Recovery Permit Applications, Notice of Proposed Rulemaking, 90 FR 29806, 29811 (July 7, 2025), accessible at: https://www.regulations.gov/document/NOAA-NOS-2025-0108-0002.

⁶ Ultimately, the Council session ended on Monday, 21 July due to unforeseen circumstances.

⁷ Ms Carvalho also referenced UN Secretary-General António Guterres’ words in her Op-Ed for The Economist, accessible here: Economist-Article_ISA-MSG-Leticia-Carvalho_10-June-2025.pdf.

⁸ Report of the Chair of the Legal and Technical Commission on the work of the Commission at the second part of its thirtieth session, ISBA/30/C/4/Add. 1, ISBA_30_C_4_Add.1-Report-of-the-Chair-of-the-LTC-on-the-work-of-the-Commissionfv-AUV.pdf.

⁹ U.S. Intervention on Agenda Item 8 USA-statement-for-ISA-Assembly-July-2025.pdf