Supporting a successful IPO by developing an offshore development plan and groundbreaking deep-sea mining systems concept.
Vast volumes of subsea minerals lie in the world's oceans, and the USGS estimates that subsea mineral resources are 20x terrestrial resources.
Subsea minerals contain a variety of critical minerals that are crucial for the green energy transition. These include Copper, Cobalt, Manganese, Nickel, as well as many others.
Whilst this mineral resource has been explored many times, including in the 1970s by various consortia, the current combination of rapidly growing demand and geopolitical uncertainties makes it an ideal resource to develop.
Our client, Vancouver-based "The Metals Company", approached us to develop a deep-sea mining system concept and development plan for their operations in the Clarion-Clipperton Zone. We were the designated Qualified Person for this work, and we directly contributed to a successful IPO for The Metals Company on NASDAQ in 2021.
Deep-Sea Mining for Polymetallic Nodules
The Metals Company (TMC) is the world's leading deep-sea mining company. They hold licenses to explore for polymetallic nodules in a number of areas within the Clarion-Clipperton Zone of the Northern Pacific Ocean.
Polymetallic nodules are potato-shaped accretions found on the abyssal plains of the world's oceans, typically at depths of 4,000 to 6,000m. They are rich in critical minerals, such as Cobalt, Copper, Nickel and Manganese, making them an important and valuable resource for the green energy transition.
TMC had undertaken a number of exploration research cruises to sample these resources, as well as performing crucial environmental studies and baseline assessments. They approached us to perform the engineering work to create a robust offshore development plan and mining system concept.
The Metals Company's Opportunity
Exploration licences across the Clarion-Clipperton Zone
TMC held exploration licences for a number of areas in the Clarion-Clipperton Zone, a large area of ocean in the Northern Pacific between Mexico and Hawaiʻi. The licence areas contain high concentrations of nodules with excellent grades of Copper, Nickel and other valuable critical minerals.
TMC planned to raise money via an IPO in order to fund further exploration and to commercialize this project. In order to do this they wanted to present a mature, technically solid and robust engineering solution to the unique problem of harvesting polymetallic nodules. We were able to deliver a mining system concept and offshore development plan that met this need.
Drawing Upon Decades of Experience
Our unique expertise in deep-sea mining and offshore engineering
We are one of the few offshore engineering firms with real-world experience of deep-sea mining. Our founders and team have worked for some of the largest and most advanced deep-sea mining projects, including engineering design and development work with the Kennecott Consortium in the 1970s for mining polymetallic nodules in the Clarion-Clipperton Zone:
Geotechnical sediment testing during the 1972 Norma Cruise, during which seabottom strength was researched in the Clarion-Clipperton Zone
"Model V", a 1/5th scale deep-sea mining collector test system, tested 1973 in 15,000ft water depth
Prototype polymetallic nodule collector, successfully tested in the Pacific 1974-75
This unique experience meant that we were able to talk authoritatively about deep-sea mining of polymetallic nodules, as well as drawing on experience and expertise that few other engineering firms can access.
Mining Concept
Robust deep-sea mining concept based upon historical experience
The deep-sea mining concept design that we proposed is an extrapolation of existing technologies that have been developed for offshore oil and gas operations, along with previous seabed mineral development work.
A lot of the technology is a direct derivative of previous experience in nodule developments, for example our team member's work with the Kennecott Consoritum in the 1970s. This work included significant pilot testing of harvesters and lift systems.
The concept comprises 3 major evolutions:
Collector Test - a proof-of-concept of the collector and lift equipment
Project Zero - a converted drillship that would support small-scale commercial operations
Project One - expanding to large-scale commercial operations, including:
An upgrade to the Project Zero production support vessel
Introduction of a second converted drillship
Construction of a purpose-built production support vessel (see figure 13.1)
At-scale commercial production from the NORI-D site will involve three production support vessels, operating a total of 12 harvesters, and producing approximately 15.4 million tons of (wet) nodules per year. This will translate to around 3 million tons of annual ore production, worth around $4.4 billion (per 2021 estimates and metal prices)
Our direct experience in deep-sea mining allowed us to propose a mature and robust concept that drew upon many existing technologies, sub-components and equipment.
Detailed Engineering Design
Translating high-level concept to specific engineering requirements
TMC wished to present a thorough and mature engineering concept to their investors, and so we performed more detailed work around
We were asked to perform an in-depth evaluation of the upgrade of the Hidden Gem from an oil & gas deepwater drillship to a deep-sea mining production support vessel. Our specific recommendations included input on the harvester design, upgrade of the LARS, airlift and riser equipment, and improvements to material handling.
Digital Twin
Complete digital model of offshore operations
As a valuable extension to our work with The Metals Company, we developed and implemented a digital twin of their entire offshore operations. The digital twin included modelling harvesters, risers, production support vessels and offshore operations.
We modelled the complete harvesting process, including the use of 4 harvesters in simultaneous operations. This allowed us to calculate these engineering parameters in a variety of different states and operating conditions. This model allowed for further operational and engineering testing and optimization.
The Metals Company went public on NASDAQ on September 10th 2021, raising a total of $330 million via a SPAC. Our work was a critical part of this IPO.
Our analysis supported the AMC Technical Report and Initial Assessment required by the SEC for a minerals company issuance, and we were the Qualified Person for these documents. The concept design and engineering work that we performed provided significant support for the IPO, particularly as investors recognised our depth of experience and unique capabilities in the field of offshore engineering and particularly deep-sea mining.
Further, our mining concept and analysis featured heavily in TMC's investor presentation and was reviewed by hundreds of investors that chose to invest millions of dollars in this company:
We are one of the few engineering firms in the world that has the experience and expertise to perform this work, particularly at the levels required to be a Qualified Person for an IPO.
Unique Authority
Our practical deep-sea mining expertise, combined with a long history of developing and modelling complex offshore engineering projects, allows us to speak with a unique and esteemed authority.
Specialist Solutions
We continue adding value throughout a project's lifecycle, beyond the IPO, including providing project management, operational expertise, and detailed engineering work to solve the toughest problems.
Applying our Expertise
We consult on deep-sea mining projects throughout their lifecycleNote: alternate section to that above which focuses on breadth of work, not just funding
Concept Design
Accurate digital models combined with a physics engine and engineering parameters allow for accurate modelling of real-world loads, scenarios and operations.
Detailed Engineering
Complex engineering scenarios and loads can be accurately recreated and modelled, allowing unique and deep understanding of operating parameters and limits.
Owner's Engineer
We continue adding value throughout a project's lifecycle, beyond the IPO, including providing project management, operational expertise, and detailed engineering work to solve the toughest problems.
Applications to Other Resources
We have direct experience and expertise in all subsea mineral types
Polymetallic Nodules
We have experience in concept design, exploration and operations in mining polymetallic nodules, both in International Waters and within the Exclusive Economic Zones (EEZs) of various countries including the Cook Islands and Japan.
Seafloor Sulfides
Our team has prepared feasibility studies for mining seafloor sulfide deposits for various clients, including major mining companies. We hold patents for sampling and mining technologies for this resource.
Cobalt-Rich Crusts
We have worked on developing crust mining machines, as well as creating mining development scenarios for the EEZs of the Hawaii Archipelago and Johnston Island, for the US Department of the Interior.
Our Services
Concept Evaluation
Concept evaluation for complex and innovative offshore projects, including deep-sea mining and offshore wind manufacture.
Technical Feasibility Studies
Techno-economic feasibility studies of complex offshore mining systems, floating wind concepts, and new manufacturing techniques
Economic Analysis
Financial modeling and economic analysis of concepts, including NPV, IRR and project sensitivities.
Prototype Development & Testing
Construction, development and testing of prototypes for complex offshore projects and challenges.
Finite-Element Modeling
Fluid-flow, hydrodynamics, mechanical stresses and other complex marine finite-element modeling challenges.
Mooring Load & Fatigue Analysis
Analysis of mooring loads and fatigue analysis for moored, tethered and other bottom-secured solutions in offshore wind.
Geotechnical sediment testing during the 1972 Norma Cruise, during which seabottom strength was researched in the Clarion-Clipperton Zone
"Model V", a 1/5th scale deep-sea mining collector test system, tested 1973 in 15,000ft water depth
Prototype polymetallic nodule collector, successfully tested in the Pacific 1974-75
