Post on 19-Jul-2020
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Seafloor polymetallic nodule harvestingErika Ilves, Head of Strategy
Smart Mine Conference – June 26, 2019, London
DISRUPTIVE NEW SOURCE OF BATTERY METALS FOR THE GREEN TRANSITION
Smart Mine?
ü Abundant resourceü Bottom of the cost curveü Environmental & social impact
- Low carbon footprint- Zero waste or tailings- Zero deforestation- No dislocation of communities- Equitable development
Today: 5 million EVsout of 1.3 billion vehicles
2030: 125 million EVs
2047: 1 billion EVs
Trend towards more nickel intensive battery chemistries
Li-ion battery cathode compositionKg / KWh
We will need a lot of nickel and cobalt
75KWh EV battery with NMC 811 cathode chemistry contains:• 56 kg of Ni• 7.1 kg of Co• 6.6 kg of Mn
To electrify 1 billion ICE cars, the world would need:• 56 million tonnes of Ni• 7.1 million tonnes of Co• 6.6 million tonnes of Mn
EV manufacturers are worried about• Security of supply• Climate & environmental impact• Human rights• Price
7
75KWh Tesla Model 3 battery would generate• 13.2t of CO2 if
manufactured in Asia• 50% can be removed
with 100% renewable power
• The rest comes from production of raw materials
Li-ion battery triples CO2 emissions from manufacturing
A better way to supply EV batteries:Naturally occurring, polymetallic nodules sitting unattached on the deep ocean's abyssal plain.
It is the world’s largest undeveloped high-grade base-metal resource.
No child labor. No social displacement. No deforestation. No waste. No toxic tailings.
Polymetallic nodule
“NMC battery in a rock”
Ni
Mn Cu
Co
MexicoHawaii
(USA)
THE CLARION CLIPPERTON FRACTURE ZONE (CCZ)
Total CCZ resource estimate34 billion tonnes of nodules• 6 billion tonnes of manganese• 270 million tonnes of nickel• 234 million tonnes of copper• 46 million tonnes of cobalt
Enough to electrify 1 billion cars 4 times over
Source: Resource Estimates of the Clarion Clipperton Manganese Nodule Deposit, Morgan 1999
Marine preservation zones
DeepGreen’s Exploration areas
Nodule collection got started in the 1970s but halted due to lack of regulations
TIMLINE
UNCLOS entersinto force and
establishment of ISA
First explorationcontracts grantedto Government
Institutions
NORI granted75,000km2
Marawa granted75,000km2
exploration contract
Clarion Fracture Zone
Clipperton Fracture Zone
Hawaii(USA)
Mexico
NORI Area (74,830km2) & Marawa Area (74,990km2)
160
W̊15
0W̊
140
W̊13
0W̊
120
W̊110
W̊
1994 2001 2011 2015
NORI Area(74,830km2)
Marawa Area(74,990km2)
Area of particularenvironmentalinterest (APEI)
Map Showing the Location of the Nine Areas of Particular Environmental Interest, Established by the International Seabed Authority in the Clarion-Clipperton Zone.
0 250 500 1000
Kilometers
Resource harvesting in the CCZ is now regulated by the International Seabed Authority (ISA)
1994
UNCLOS entersinto force and
ISA is established
2001
First ExplorationContracts granted
to Government Institutions
2011
NORI Area rights acquired by
DeepGreen, sponsored by Nauru
2015
Marawa Arearights acquired by
DeepGreen, sponsored by Kiribati
2017
Draft Exploitation Regulations issued
by ISA
2020
Final Exploitation Regulations in
place, ISA open for Exploitation applications
DeepGreen is the only pure-play commercial player to hold two concessions in the CCZ
CRIMM/China Minmetals (China)COMRA (China)GSR/Deme (Belgium)CIIC & GSR/Deme (Cook Islands)Subsidiary of Lockheed Martin (UK)Subsidiary of Keppel (Singapore)Subsidiary of Nautilus (Tonga)JOGMEG consortium (Japan)BGR (Germany)IFREMER (France)Research institutes (South Korea)SC Yuzhmorgeologiya (Russia)IOM (Russia, Bulgaria, Slovakia, Poland, Czech, Cuba)
Other contractors
NORI Area (Nauru)
Marawa Area (Kiribati)
DeepGreen
Box core sampling: consistent abundances
AUV camera imagery: continuous nodule pavements
We have completed three offshore survey campaigns
Cobalt
893M/THIGH GRADEPOLUMETALLIC MANGANESENODULES
Abundance
Total NORI Area
12.5 kg /m2
Resource1 900Mt
Nickel 1.30%
Manganese 29.2%
Copper 1.08%
Cobalt 0.18%
Cu Equiv2 7.2% / 49 Mt
N ICK E L MANGANESE COPP ER
Vale / Goro Nickel Project
Eramet / Moanda Mine
Taseko / Gibraltar Mine
Total NORI Area
Abundance 13.1 kg /m2
Resource (wet) 893Mt
Nickel 1.30%
Manganese 29.2%
Copper 1.08%
Cobalt 0.18%
Cu Equiv 6.5%
Comparable to three mines in one
Comparing to undeveloped land-based nickel deposits
0.0
7.7
2.2 1.2 1.23.2
1.1 1.3 1.30.8
19.51.3
4.4
2.8 2.40.0
1.0 0.1 0.10.1
19.5
9.0
6.6
4.0 3.6 3.22.1 1.4 1.4 0.9
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
0
2
4
6
8
10
12
14
16
18
20
NO
RI
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ont
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Nic
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eith
Barro
Alto
Nickel Equivalent G
rade (%)
Con
tain
ed N
icke
l Equ
ival
ent (
Mt)
InferredM&I (Inclusive)Grades
Assuming the following commodity prices: Cu $7,084/tn, Ni $19,926/tn, Au $1,250/oz, Ag $18/oz, Co $50,993/tn, Mn $4/tn, Mo $11/lb, Pt $1,200/oz, Pd $800/oz.Source: DeepGreen PEA April 2019, WoodMac, mining project/company websites
Scaling through partnerships
Resource Collection Shipping Processing Sales
Strategic partnerships
Convert Exploration Contracts for NORI and Marawa Areas into Exploitation Contracts
Acquire new high quality ground in CCZ and EEZs
Drive strong focus on ocean health to secure the social operating license
Pre-sell battery precursors directly to EV manufacturers and battery gigafactories
Build a consumer-facing brand to drive consumer preference for Green Metals
Engage well-capitalized strategic partners for test, design, build & operate offshore and onshore production systems. Maintain strong in-house system design capability to challenge partners to innovate
Discussions in progress with
several potential partners
Strategic partnership in place, a major
shareholder
Strategic partnership in place, a major
shareholder
Production vesselLength: 225mStation Keeping: DP2DWT – 79,000 TePOB: 120Power: 75 MWNodule Storage: 70,000 Te
Harvester vehicleL x B x D: 19 x 12 x 6 MWeight: 325 Te (Air)Weight: 46 Te (water)
Nodule collection
Zero waste processing
Crystallisation
Crystallisation
Expecting to produce at the bottom quartile of the nickel cost curve…
Nor
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land
World’s cumulative nickel production by miner, million tonnes
NORI AREA D–$3.11/lb
C1
cash
cos
t, $
/lb
…and at a fraction of CO2
0.46
0.11
1.02
0.22
Land ores Ocean nodulesCopper Cobalt Manganese Nickel
Electrifying 1 billion vehicles Gigatonnes of CO2e attributableto production of battery cathode metals1 and copper 2018-20472
1.6
0.4
-75%
1 Nickel, cobalt contained in metal sulphates; copper contained in copper cathode; manganese contained in FeMn. Allocation of CO2 based on economic value of contained metal. Mass-based allocations would include an allocation to 171Kt of fertilizer grade ammonium sulphate with very low economic value and lead to much lower values for key metals derived from ocean nodules.2 Taking into account ore grade degradation for land-based nickel and copper between now and 2047Source: Published academic papers on metal production from land ores; Company PEA April 2019; Comparative LCA analysis of producing metals from land ores vs. ocean nodules (using Ecoinvent database)
Driving consumer preference for Clean Metals together with EV manufacturers
THANK YOUFOR YOUR TIMEErika IlvesHead of Strategy & Business Developmenterika@deep.green