TMC the metals (NASDAQ:TMC) is advancing a U.S. permitting process for commercial deep-sea nodule recovery while preparing offshore collection equipment and evaluating domestic processing options, Chief Financial Officer Craig Shesky said during a Water Tower Research conference session.
Shesky said the company’s polymetallic nodules contain nickel, cobalt, copper and manganese and sit unattached on the seafloor, differentiating them from conventional underground or open-pit ore bodies. He said TMC views the deposits as a high-grade, two-dimensional resource that can be collected using a vessel, riser pipe and collector vehicles.
Resource studies and development scope
Shesky said TMC’s prefeasibility study for its initial NORI-D project estimated net present value of approximately $5.5 billion and lifetime revenue of roughly $70 billion. The study represents about 22% of the resource previously calculated across the company’s NORI and TOML exploration areas, he said.
The company has reported 51 million tons of probable reserves within NORI-D, which Shesky described as the first reported reserves for a polymetallic nodule project. He said TMC intends to conduct further sampling in the area formerly known as TOML to upgrade additional material from inferred resources into measured and indicated categories, and potentially expand reserves over time.
TMC USA has applied through the National Oceanic and Atmospheric Administration, or NOAA, for a commercial recovery area spanning about 65,000 square kilometers, Shesky said. He added that the broader area covered by TMC’s NOAA exploration-license and commercial-recovery applications is about the size of Oklahoma.
Permitting process remains central catalyst
Both of TMC’s applications are listed in the Federal Register and are in public-comment stages, Shesky said. One application is focused on commercial recovery, while another is proceeding through an Environmental Impact Statement process.
He said the process is not a “rubber stamp” and will include public comments, company responses and information requests from NOAA. TMC has spent approximately $700 million on the project to date, including about $250 million on environmental research, according to Shesky.
The company expects a key next step to be certification of its consolidated application later this year. Shesky said such certification would indicate that NOAA had determined that elements including the mine plan and the company’s ability to finance the development met applicable requirements, while the environmental review would still continue.
Shesky said TMC had previously expected a permit in the first quarter of the following year but now expects the process to take longer because of administrative delays at NOAA. He said the company believes it has a strong application and remains confident that a permit will ultimately be granted.
Offshore system and U.S. processing plans
TMC has moved its offshore program into a commercial development agreement with Allseas, according to Shesky. The first commercial system is designed to recover 3 million wet tons of nodules annually. It is expected to use the Hidden Gem vessel, two larger collector vehicles, a wider riser pipe and additional onboard compression capacity compared with the earlier pilot configuration.
Shesky said TMC and Allseas are in an active procurement process targeting vessel commissioning in the fourth quarter of 2027. The company is advancing equipment preparations in parallel with permitting because of its confidence in the regulatory path, he said.
Onshore, TMC holds exclusive rights over a nearly 1,500-acre site at the Port of Brownsville. The company is working with Mariana Minerals on a potential processing and refining complex, referred to internally as “Nodule City,” and has an agreement with Eco Minerals that Shesky said could provide broader processing flexibility.
However, he said TMC would pursue construction only if most funding for the facility came from the U.S. government. The company is in advanced discussions with multiple government agencies regarding potential funding, Shesky said, and does not plan to raise market capital for the facility. He said TMC had $143 million in liquidity as of the end of June.
Royalty-company relationship
Shesky also discussed The Metals Royalty Company, or TMCR, which listed on Nasdaq in April. He said TMCR resulted from TMC’s previously announced 2023 transaction with Low Carbon Royalties and holds a 2% gross overriding royalty on the NORI property.
The royalty can be repurchased using production cash flows to reduce it to 0.5%, he said. TMC initially received $5 million and a 35% equity stake in Low Carbon Royalties; following TMCR’s capital raises, TMC’s ownership has declined to 22%, according to Shesky.
Looking ahead, Shesky identified permitting progress and potential U.S. government funding for Brownsville as TMC’s principal near-term milestones. He said the company also continues discussions with possible partners while pursuing its stated goal of becoming a commercial critical-metals producer.
About TMC the metals (NASDAQ:TMC)
The Metals Company (NASDAQ: TMC) is a deep-sea minerals exploration and development company focused on the potential recovery of polymetallic nodules from the ocean floor. These potato-sized nodules contain nickel, copper, cobalt and manganese, metals used in batteries, electric vehicles, renewable energy infrastructure and other industrial applications.
The company’s primary exploration interests are in the Clarion-Clipperton Zone, an area of the Pacific Ocean between Mexico and Hawaii.
