TMC the metals company Inc. (“TMC” or “The Metals Company”), an
explorer of lower-impact battery metals from seafloor polymetallic
nodules, today announced that leading lithium-ion battery supply
chain research firm, Benchmark Mineral Intelligence (“Benchmark”),
has completed an independent third-party study of how terrestrial
cobalt mining in the woodland forests of the Democratic Republic of
Congo (DRC) and nickel mining in the rainforests of Indonesia
impact terrestrial carbon sinks. The full study can be downloaded
here and a summary document here.
While awareness is growing of the direct carbon emissions from
metals mining and processing, lifecycle assessments do not often
assess the impacts of land-use change on carbon sinks in specific
regions. The new Benchmark study complements their earlier
independent third-party lifecycle assessment where the
environmental impacts of TMC’s planned NORI-D Polymetallic Nodule
Project are compared to the lifecycle impacts of key-land based
production routes for nickel, cobalt and copper [see full
report ; summary ]. Benchmark focused on DRC (75% of the
world’s cobalt production in 2022) and Indonesia (50% of the
world’s nickel production in 2022) and set out to quantify the loss
of carbon stocks and sequestration services caused by the mining of
cobalt in the region of Katanga, DRC and nickel in Sulawesi,
Indonesia. Benchmark data was used to select five of the largest
mines in each region as case studies, which then underwent
Geographical Information System (GIS) mapping analysis to look at
changes over a 14-year period. Habitat types were defined using the
Land Cover Classification System to assess the changes and impact
that mining had on regional carbon stocks during that same
period.
"Forest ecosystems play a critical role in the carbon cycle, yet
when it comes to sourcing energy transition metals from forested
regions, the impacts on carbon stored in trees, plants and soils,
and their ability to draw down carbon from the atmosphere
unfortunately often go unaccounted for, along with the additional
ecosystem services they provide and the loss of biodiversity they
host" said Erica Ocampo, Chief Sustainability Officer for The
Metals Company.
“This new study provides insights to help us understand the
relative benefits of developing the nodule resource in a region
devoid of trees or plants, and with orders of magnitude less life
than would be found in biodiverse forest ecosystems being impacted
by mining today."
In both Indonesia and the DRC, the extraction of metal ores
through open pit mines requires the complete removal of overlying
ecosystems and contained carbon sinks, in turn eliminating the
carbon sequestration services they provide. The study found that 1
kg of nickel mined from saprolite and limonite ore in Sulawesi
removes forests containing carbon stock equivalent to 7.0 and 9.4
kg of CO2e, and 3.6 kg of CO2e in the case of cobalt mined in
Katanga. Due to the resulting vegetation change, mining activities
cause carbon sequestration services loss of 4.8 g and 6.5 g of CO2e
respectively for nickel, and 9.3g of CO2e for cobalt per year.
Furthermore, Benchmark reported an average area of vegetation
change of 2.6 million square meters and 1.4 million square meters
per year respectively for each nickel and cobalt case study mine
over the period assessed by GIS. This activity results in the loss
of 443,000 tonnes CO2e and 57,000 tonnes CO2e of carbon sinks per
year and the annual loss of 309 tonnes CO2e and 147 tonnes CO2e of
carbon sequestration services, for nickel and cobalt
respectively.
When combining the findings of this latest study on carbon stock
loss with the GHG emissions (Global Warming Potential) quantified
in Benchmark’s earlier study, the total carbon impacts of
Indonesian nickel production from laterites via RKEF and HPAL
routes increase by between 7-49% respectively, and by 35% in the
case of cobalt production from mixed sulfides in the DRC.
In January 2022, TMC announced the publication of a
peer-reviewed study in the Yale Journal of Industrial Ecology which
found that seafloor polymetallic nodules could significantly
reduce—and in some scenarios eliminate—the onshore solid waste
streams typically generated by metal production from land ores. An
earlier peer-reviewed study – published in the Journal of Cleaner
Production – found that sourcing critical battery metals from
seafloor nodules could drastically reduce the lifecycle climate
change impacts when compared to land ores.
The Metals Company will convene a webinar on December 12 where
Erica Ocampo will discuss the findings of this latest report as
well as those of Benchmark’s earlier study. If you would like to
register for the webinar, please use the following link.
About The Metals CompanyThe Metals Company is
an explorer of lower-impact battery metals from seafloor
polymetallic nodules, on a dual mission: (1) supply metals for the
global energy transition with the least possible negative impacts
on planet and people and (2) trace, recover and recycle the metals
we supply to help create a metals commons that can be used in
perpetuity. The Company through its subsidiaries holds exploration
and commercial rights to three polymetallic nodule contract areas
in the Clarion Clipperton Zone of the Pacific Ocean regulated by
the International Seabed Authority and sponsored by the governments
of Nauru, Kiribati and the Kingdom of Tonga.
About Benchmark Mineral Intelligence Benchmark
is the world’s leading provider of actionable intelligence for the
lithium-ion battery and electric vehicle supply chain. Benchmark’s
expertise, together with unique and rigorous data collection
processes, add real knowledge to opaque industries that are central
to the lithium-ion economy. Their services guide the biggest
investment decisions, government policy and industry collaboration
around the world. Benchmark’s expertise is reinforced by its ESG
division that offers a set of subscription and consultancy services
providing robust metrics and Life Cycle Assessments measuring the
sustainability of the EV supply chain build out. Benchmark ESG
provides bespoke independent assessments of the material risks
organizations face and investor-driven analysis, driving ESG
through the heart of the EV supply chain’s companies. Benchmark ESG
assessments assist in reducing future compensation associated with
poor ESG risk identification in an industry where sustainability is
being widely critiqued. From the mine to cathodes and anodes,
through to the lithium-ion battery cell, Benchmark’s entire supply
chain approach is unique and relied upon the world over. More
information is available at
http://www.benchmarkminerals.com
More Info Media | media@metals.co Investors |
investors@metals.co
Forward Looking Statements Certain statements
made in this press release are not historical facts but are
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. Forward-looking statements generally are accompanied by words
such as “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “should,” “would,” “plan,”
“predict,” “potential,” “seem,” “seek,” “future,” “outlook” and
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. The
forward-looking statements contained in this press release include,
without limitation, statements that waste streams could be reduced
by using deep-sea nodules. These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from those discussed in the
forward-looking statements. Most of these factors are outside TMC’s
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: the outcomes of
research conducted by third parties including the lifecycle
assessments; regulatory uncertainties and the impact of government
regulation and political instability on TMC’s resource activities;
changes to any of the laws, rules, regulations or policies to which
TMC is subject; the impact of extensive and costly environmental
requirements on TMC’s operations; environmental liabilities; the
impact of polymetallic nodule collection on biodiversity in the CCZ
and recovery rates of impacted ecosystems; TMC’s ability to develop
minerals in sufficient grade or quantities to justify commercial
operations; the lack of development of seafloor polymetallic nodule
deposit; uncertainty in the estimates for mineral resource
calculations from certain contract areas and for the grade and
quality of polymetallic nodule deposits; risks associated with
natural hazards; uncertainty with respect to the specialized
treatment and processing of polymetallic nodules that TMC may
recover; risks associated with collection, development and
processing operations; fluctuations in transportation costs;
testing and manufacturing of equipment; risks associated with TMC’s
limited operating history; the impact of the COVID-19 pandemic;
risks associated with TMC’s intellectual property; and other risks
and uncertainties, including those in the “Risk Factors” sections,
included in the final prospectus and definitive proxy statement,
dated and filed with the Securities and Exchange Commission (the
“SEC”) on August 12, 2021 relating to the business combination, in
TMC’s Annual Report on Form 10-K for the year ended December 31,
2022, filed by TMC with the SEC on March 27, 2023, as updated
and/or supplemented by TMC’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2023, filed with the SEC on August 14, 2023,
and in TMC’s other future filings with the SEC, including TMC’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
2023, filed with the SEC on November 9, 2023. TMC cautions readers
not to place undue reliance upon any forward-looking statements,
which speak only as of the date made. TMC does not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions,
or circumstances on which any such statement is based except as
required by law.
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