Financial Desperation Is Driving TMC’s Reckless Push To Bypass International Law

28 March

The Deep Sea Mining Campaign has condemned The Metals Company’s (TMC) announcement that it will seek deep-sea mining permits through the United States as a cynical, desperate attempt to stay afloat, not a credible step forward.

“This is a company floundering under pressure and trying to buy time,” said Andy Whitmore, Finance Advocacy Officer at the Deep Sea Mining Campaign. “TMC’s last-minute pivot to the U.S. system is a red flag — one driven by investor panic, financial stress, and a complete disregard for multilateralism.”

TMC’s timing, just hours before its investor earnings call and one day before the International Seabed Authority (ISA) is set to discuss how it will deal with a potential mining application from TMC (through its sponsoring state Nauru) is no coincidence. This is about pressure, not progress.

By proposing to use the U.S. Deep Seabed Hard Mineral Resources Act (DSHMRA) even though the U.S. is not party to the UN Convention on the Law of the Sea (UNCLOS) TMC is not only trying to apply undue pressure to the ISA, but also attempting to circumvent international customary law and sidestep global scrutiny. In doing so, it opens itself up to a backlash from investors and customers alike.

They’re waving around a potential U.S. permit system as if it’s a legitimate alternative to the international process. It’s not. It’s smoke and mirrors.

Financial panic behind the pivot

A closer look at TMC’s Q4 2024 earnings paints a picture of a company in crisis. By focussing its quarterly earnings call on this news, TMC downplayed core financials and the technological shifts that are reducing the need for nickel and cobalt in batteries suggesting it is struggling to maintain confidence and liquidity.

”TMC made a loss of over $81 million last year, and is still burning through cash,” said Whitmore.

“Whether it survives as a company comes down to whether it can quickly obtain a licence to mine. Even setting aside the political ramifications, there is no guarantee of a licence nor even a hint of a timeline for mining. And given the backlash they’ve likely triggered, they may have opened themselves up to even more insecurity" said Whitmore.

Despite their optimism, TMC’s own annual report filing at the SEC admits this new U.S strategy introduces “conflicting regulatory requirements”, “political instability”, and “no assurances” that any commercial rights will be granted, ever. (1)

TMC also hinted at applying for licenses in the same areas currently linked to its Pacific sponsors Nauru and Tonga, raising serious questions about transparency, shared benefits, and regional sovereignty. If U.S. licenses potentially overlap with ISA licenses or override Pacific partnerships, what does that say about how TMC views its so-called allies?

“This isn’t about sustainability; it’s about staying solvent,” says Whitmore. “TMC will do anything to stay solvent. They have never cared about sound science, good governance, or the Pacific. This is about money, pure and simple.”

We call on governments to reject this reckless attempt to start mining in international waters through any means. More than ever it emphasises why a global moratorium on deep-sea mining is the only responsible path forward. The deep ocean is not a bargaining chip for failing businesses.

(1) TMC’s 2024 10-K annual filing (SEC) acknowledges serious regulatory uncertainty:

“Pursuing this pathway will likely introduce new uncertainties... such as differing and potentially contradictory environmental, permitting and legal requirements… The announcement of this strategy may cause additional regulatory and political instability… and negatively impact our interactions with the ISA.”

— TMC 10-K Filing, March 2025

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