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Mining firms seek Dutch Royal IHC help for deep sea mining: report
The lack of seabed mining expertise is a key hurdle for India, which is not yet prepared to extract minerals from the ocean’s depths.
Indian mining and cement firms have sought technical help form Dutch shipbuilder Royal IHC as they ready bids for deep-sea mineral blocks up for auction, Reuters reported, citing some people in the know.
The person who is aware of this development said that Dutch shipbuilder and mining expert has reviewed mining conditions, evaluated possible mining techniques, developed possible mining scenarios and has provided high level capital and operational cost estimations.
In November, India had launched the first tranche of auction for 13 offshore deep-sea mineral blocks, including three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks.
Bidding for the first tranche of the auction is likely to conclude by this month-end.
The person who is aware of the fact that mining companies have approached IHC Royal said that the assessment showed that lime mud blocks appear to be feasible for mining.
The person added that the polymetallic crust where the potential nickel reserves are need more exploration before business case can be evaluated, he however added that available data on crust is of lower amount and quality, making it more difficult to assess. The crust also appears relatively difficult to mine. He added that grade of nickel of the crust, as it is known now, is rather low at 0.5%.
However the person added that the business case is difficult to assess, but it appears there is interest to bid. The person added that downside risk in case of seven polymetallic nodule blocks is limited. Although the interested companies still need deep pockets.
The person added that the extracted metal will need upgrading and processing, but then it should be possible. Adding that as such facility is not available in India mining companies may have to rely on firms in Indonesia or Japan till the time India builds upgrading and processing facility back home.
The lack of seabed mining expertise is a key hurdle for India, which is not yet prepared to extract minerals from the ocean’s depths.
The world’s fastest-growing major economy is looking to fast-track seabed mineral exploration to boost the supply of raw materials critical for energy transition technologies.
One person said IHC has assisted with knowledge of mining techniques and is helping firms estimate costs for extracting minerals from offshore blocks. The firm is open to providing mining equipment to clients.
About 14 foreign miners from France, Namibia, the Netherlands, Norway, and Sweden attended a webinar organized by the government on 18 March to explain opportunities in offshore mining, the report said.
The government had amended the Offshore Areas Mineral (Development and Regulation) Act in 2023 to open up offshore mining to the private sector.
The government’s earlier attempt at conducting an onshore critical mineral auction had limited success, with 24 of 49 blocks successfully awarded to bidders, translating to a success rate of 48.98%.
The government had to cancel the auction of over half of the critical mineral blocks offered in the fourth round of bidding in December last year citing poor response.
Royal IHC has expertise in deep-sea exploration and mining, providing a range of integrated solutions tailored to the mining industry’s demands. The company is a leading producer of vessels, equipment, and its customers.
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