8-K: TMC the metals company Submits Application for Commercial Recovery of Deep-Sea Minerals in the High Seas

TMC the metals company's U.S. subsidiary has submitted applications to NOAA for a commercial recovery permit and two exploration licenses under the Deep Seabed Hard Mineral Resources Act (DSHMRA).

Summary

• TMC the metals company Inc. (TMC) announced that its U.S. subsidiary, The Metals Company USA LLC (TMC USA), has submitted applications to the National Oceanic and Atmospheric Administration (NOAA) for a commercial recovery permit and two exploration licenses under the Deep Seabed Hard Mineral Resources Act (DSHMRA).
• The commercial recovery permit application, TMC USA-A_2, covers 25,160 square kilometers in the Clarion Clipperton Zone (CCZ).
• The two exploration license applications, TMC USA-A and TMC USA-B, cover a combined area of 199,895 square kilometers.
• These exploration areas are estimated to contain 1,635 million wet tonnes of polymetallic nodules, with a potential upside of 500 million tonnes.
• The estimated resource contains approximately 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese.
• NOAA is expected to make an initial determination on the exploration licenses within 30 days and on the commercial recovery permit within 60 days.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the submission of applications, potential for U.S. mineral independence, and anticipated economic benefits. The forward-looking statements are tempered by risk disclosures, but the overall tone is optimistic.

Positives

• The submission of applications advances TMC's timeline ahead of its original June 27 application target.
• The applications could lead to a shovel-ready path to new and abundant supplies of nickel, copper, cobalt, and manganese for the United States.
• The strategic move sets the foundation for an emerging industrial ecosystem expected to mobilize tens of billions of dollars in private sector investment.
• The company has invested over half a billion dollars and spent more than a decade preparing for this moment.

Risks

• The applications are subject to an initial determination by NOAA as to substantial compliance and completeness under DSHMRA, and there is no assurance that such determination will be favorable.
• There is no guarantee that the applications will proceed to full review without delay, or that NOAA will not request additional information, modifications, or clarifications.
• There is no guarantee that any of the applications will lead to NOAA granting the Company any exploration licenses or a commercial recovery permit.
• The company's ability to develop sufficient data to support license and permit applications and satisfy environmental requirements is a risk.

Future Outlook

TMC anticipates NOAA's review of the applications, including environmental and technical evaluations, and looks forward to delivering the world's first commercial nodule project.

Management Comments

• Gerard Barron, Chairman and CEO of The Metals Company, said: 'Today marks a major step forwardnot just for TMC USA, but for Americas mineral independence and industrial resurgence.'
• Gerard Barron also stated: 'With these applications, we are offering the United States a shovel-ready path to new and abundant supplies of nickel, copper, cobalt, and manganesecritical metals for energy, infrastructure, and defense.'

Industry Context

This announcement positions TMC as a leader in the deep-sea mining sector, particularly in the context of the U.S. government's push for securing critical mineral supplies and reducing reliance on foreign sources.

Comparison to Industry Standards

• The document mentions SEC SK 1300-compliant resources, indicating adherence to industry standards for resource reporting.
• The company's activities can be compared to other deep-sea mining companies, such as DeepGreen Metals (now TMC), and their efforts to secure exploration and exploitation licenses.
• The estimated resource sizes (1,635 million wet tonnes of polymetallic nodules) can be compared to resource estimates of other deep-sea mining projects to assess the scale of TMC's potential operations.

Stakeholder Impact

• Shareholders: Potential for increased value due to the advancement of the project.
• Employees: Potential for job creation in the U.S. shipbuilding, port infrastructure, minerals processing and manufacturing sectors.
• Customers: Potential for a more secure and reliable supply of critical minerals.
• Suppliers: Potential for increased business opportunities in the deep-sea mining sector.
• Creditors: Potential for increased financial stability of the company.

Next Steps

• NOAA's initial determination on the exploration licenses within 30 days of receipt.
• NOAA's initial determination on the commercial recovery permit within 60 days of receipt.
• Full review of the applications by NOAA, including environmental and technical evaluations.

Key Dates

Keywords

polymetallic nodules, deep-sea mining, critical minerals, exploration licenses, commercial recovery permit, DSHMRA, NOAA, TMC, TMC USA, Clarion Clipperton Zone