Mining is the extraction of materials from the earth. While sometimes controversial, it plays a huge part in the economy as it affects the supply of raw materials which power industries.
To help you understand this sector, our highly experienced Kiplinger Letter team will update you on major developments (Subscribe to The Kiplinger Letter or get a free issue). Here is our latest mining forecast…
While international regulators are still putting various rules in place, they will likely start accepting deep-sea mining applications this summer.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The UN-affiliated International Seabed Authority (ISA) won’t finish its mining code by July 9, the deadline that was set after the island nation Nauru triggered a provision in the UN Convention on the Law of the Sea.
To keep the process moving, ISA will instead start hearing bids from companies interested in mining the seabed. Less clear is when mining will actually start, likely not until next year at the earliest, but other obstacles could push the start date back even further.
Cost of deep-sea mining is still high
Raising the necessary capital will also be a challenge for miners who are working out the kinks, such as the Metals Company (TMC). The Canadian firm has estimated that a full-fledged mining operation with a processing facility would cost $10.6 billion to launch, a sum that might be prohibitively expensive.
The seabed contains more valuable minerals than all continents combined, including abundant deposits of copper, nickel, manganese and cobalt.
Clean-energy mining
All have key clean-energy applications, most notably batteries for electric vehicles (EVs). Notably, the U.S. will not have a dog in the fight for deep-sea minerals.
Lockheed Martin (LMT), which long maintained an interest in deep-sea mining via foreign subsidiary UK Seabed Resources, has already exited the business.
American companies cannot directly apply for deep-sea mining permits, since the Senate has not yet ratified the UN Convention on the Law of the Sea.
This forecast first appeared in the Kiplinger Letter, which has been running since 1925 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to the Kiplinger Letter here.
Related content
- EV Tax Credit: Rule Changes Income Limits, What You Need to Know
- Top 10 Electric Cars in the U.S. — Most Popular EVs
- 9 Best Commodity ETFs to Buy Now
- Best Green Energy Stocks
-
Tax Pros: Is Someone Fraudulently Using Your IRS PTIN?Tax Filing An unmonitored preparer tax identification number (PTIN) can lead to serious issues.
-
Alphabet Stock Jumps on Google's Quantum Computing ChipGoogle's parent company, Alphabet, is up Tuesday after the company unveiled Willow, its new chip that powers quantum computing. Here's what you need to know.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
Should We Worry About the Slowing U.S. EconomyThe Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
-
Kiplinger Special: How Businesses Should Budget for 2025Kiplinger Forecasts From fuel to AI software subscriptions, here's what you can expect to pay next year.
-
Intel Braces for an Even Tougher Road AheadThe Kiplinger Letter Amid a long, costly turnaround, Intel resets expectations again. Its new woes raise questions about U.S. industrial policy and global chip competition.
-
Kiplinger Special: The Long-Term Future of the U.S. Economy
The Kiplinger Letter Kiplinger's report into what it will take the U.S. to maintain a healthy economic growth rate.
