Deep sea mining investment labelled a 'financial mistake'

Deep sea mining is a financial mistake, according to Planet Tracker’s report, How to Lose Half a Trillion.

The report finds that sectors dependent on preserving intact ecosystems have greatly outperformed exploiting ones by three times in terms of financial returns over the last three decades.

The analysis finds that exploiting deep sea resources could cause over US$500bln in value destruction, of which US$30-132bln are in the mining sector.

The negative impact on the deep sea’s ecosystem services could lead to natural capital destruction of at least US$465bln, predominantly through the destruction of habitat.

Planet Tracker notes that financial market participants have the power to prevent this potential loss of at least half a trillion dollars by endorsing a moratorium on deep sea mining.

‘Before factoring in any environmental impacts, the economics already appear uncompelling’, says report lead author François Mosnier, Head of Oceans at Planet Tracker.

He adds, ‘High operating expenditures mean that returns will be negative for investors in deep sea mining, which will also destroy value in other sectors, such as terrestrial mining and fishing.’