Structural Economic Assessment of Polymetallic Nodules Mining Project with Updates to Present Market Conditions

Abstract

This paper presents the economic structure, assumptions, and relations of deep-sea mining project assessment and the results of its evaluation, based on exploration activities and research in the field of geology, mining technology, processing technology, and environmental and legislative studies. The Interoceanmetal Joint Organization (IOM) and cooperating organizations conducted a study incorporating those elements of the project that are recognized as most important for commercial viability. On the basis of formulated financial flow of operating and capital expenses of one processing technology the possible market unit price of polymetallic nodules was estimated and the result is presented in this paper. The rapidly changing economic situation, affected inter alia by the COVID-19 pandemic, is reflected in the study and updated results are based on recent changes in metal prices. Although assumptions related to mining costs need to be confirmed during pilot mining tests, promising results have been shown in the case of the use of high-pressure acid leaching processing technology (HPAL) as well as in the case of raw ore sales. A pre-feasibility study of the project will focus on the two most promising variants of the model.