8 • Marine Minerals: Exploring Our New Ocean Frontier 



MINERAL RESOURCES OF THE EEZ IN PERSPECTIVE 



The economic potential for seabed min- 

 ing at this time is not favorable when 

 compared to alternative sources of sup- 

 ply for most mineral commodities. 



Knowledge about marine geology has steadily 

 accumulated in recent years. Such knowledge has 

 enabled scientists to revise their theories about the 

 formation of some types of mineral deposits and 

 to better predict where new deposits might be 

 found. For instance, many continental features and 

 mineral deposits were formed on or beneath the 

 seabed. By studying the formation of mineral de- 

 posits on the oceanfloor, earth scientists are better 

 able to understand geology on land. In the case of 

 the formation of polymetallic sulfide deposits at 

 seafloor spreading centers, mineral deposition can 

 be observed as it occurs. 



At the same time, knowledge of mineral depos- 

 its on land — gained through years of geological ob- 

 servation and research — provides clues about the 

 nature and possible location of offshore minerals. 

 For example, beach sand deposits containing heavy 

 minerals (e.g., chromite or titanium) or phos- 

 phorites that were formed under the ocean before 

 ancient seas receded may help identify the likely 

 location and composition of similar deposits located 

 in nearshore areas. Polymetallic sulfide deposits, 

 now on shore but formed under the sea, have 

 yielded large commercial quantities of copper, zinc, 

 and lead ores. Knowledge about these onshore de- 

 posits may lead to better understanding of the evo- 

 lution of polymetallic sulfide ores formed under the 

 ocean. 



Aside from the scientific knowledge that com- 

 parative studies of undersea and onshore mineral 

 occurrences can provide, the potential for discov- 

 ering sizable deposits of minerals on land or in the 

 ocean as a result of seabed exploration could be im- 

 portant in the future. The economic potential of 

 seabed mining at this time is not favorable when 



compared to alternative sources of supply for most 

 mineral commodities. However, onshore mineral 

 deposits are finite, and, given sufficient economic 

 incentives, even the higher cost seabed mineral de- 

 posits may become commercially viable — and per- 

 haps attractive later. 



Investment in seabed exploration and ocean min- 

 ing technology should be considered a long-term 

 venture. Its value cannot be gauged against either 

 current economic conditions or present mineral de- 

 mand. In the past, even short-term demand pro- 

 jections for mineral and energy resources have 

 widely missed their marks. There is little reason 

 to believe that supply and demand relationships will 

 be any more predictable in the future. Today's 

 overcapacity in many sectors of the minerals indus- 

 try may give way to increased demand as popula- 

 tions expand and global economic growth resumes. 

 On the other hand, changes in technology can also 

 result in reduced demand for conventional mineral 

 commodities through substitution, recycling, intro- 

 duction of new materials, and miniaturization. 

 Growth in minerals demand has been linked to 

 world economic growth, and it is likely that the 

 course of minerals consumption will continue to be 

 affected by economic trends in the future. 



Until more is understood about the location, ex- 

 tent, and characteristics of offshore minerals within 

 U.S. jurisdiction, including their associated marine 

 environment, the economic future of seabed min- 

 erals is mere conjecture. Their market position wUl 

 be first determined by comparing their production 

 costs with those of their closest domestic and for- 

 eign onshore competitors and next with compet- 

 ing foreign offshore producers. Minerals markets, 

 as with most commodities, favor the least cost pro- 

 ducers first, thus recognizing an economic peck- 

 ing order among potential mineral sources. The de- 

 terminants of minerals costs are dynamic and can 

 change dramatically with the development of cost- 

 saving technologies, discovery of exceptionally rich 

 ore bodies, or erratic jumps in market prices as a 

 result of increased demand or of supply disruptions. 

 However, if environmental impacts could result 

 from the mining or processing of seabed minerEils, 



