NORI Presentation SOPAC DSM June 2011

8/6/2019 NORI Presentation SOPAC DSM June 2011

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Nauru Ocean Resources Inc.

World’s most experienced ultra

eep sea m n ng eam





NORI is committed to operating in line with the

following internationally accepted Environmental,

Social and Governance principles and standards:

• United Nations Global Compact

• Millennium Development Goals

•

Environmental Sustainability

, ,

Safety Guidelines

• Precautionary

Principle



Developing

Resources

for a Developing State



Environmental

80% Uninhabitable

Rehabilitation> $200M

No land for

a ricultureLimited

Reliant on

Foreign Aid Depleted by

us, r s

Phosphate mining





With limited terrestrial resources, Nauru must look

development. NORI is

with long term opportunities

.



• No commerciall prospective mineral resources in EEZ

• ’

application in 2008.

distributed in Nauru to promote education, ra n ng, ea an env ronmen a

rehabilitation.









ar ne c ence

DSM Regulatory Framework

Administration

NORI DSM Project

Pre‐Employment Traineeships

Staff RecruitmentCareer Planning, Professional

Development



Pre‐Employment Traineeships

Training for Nauruan National job applicants not

a rea y possessing t e requisite s i s or t e Project.

Build capacity of Nauruan Nationals to participate in

.

Recruitment

Increase representation;

Build

the

skills

base;xpan career opt ons;

Increase economic participation,

’ .



Career Planning, Professional Development and

Development of Sustainable EmploymentDeve opment o career pat s or a rea y experience

Nauruan National employees to move beyond operator

Provide sustainable employment and skills

development to ensure opportunities exist to further

advance their career.

E.g.

study

assistance

and

scholarships,

development

of

tec n ca capa t es, u ng o commerc a s s,

leadership development, technical training and

.



’

Nauru = 1st State to sponsor ISA Reserved Area application;

precedent

for

all

PICs,

particularly

those

with

few

mineral

.

PICs leading the way in BOTH Nodule & SMS development.

’ , . .

Kiribati, as NORI will have developed the equipment, methods

and rocesses to demonstrate DSM feasibilit and decrease

cost of capital.

NORI’s EIA will provide valuable data for PICs to make

environmental decisions within their own EEZ’s.

Nauru’s request for ITLOS AO has given potential PIC

sponsoring States more certainty.











States lacking mineral Resources are exposed to fluctuating metal

markets. Future supply is not guaranteed.

ome esource r c a es a rea y res r c ng supp y o s ra eg c

metals. E.g. China slashed H2 2010 REE exports quotas by 72%, raised taxes, restricted

production capacity and now further strengthening pricing power with Baotou REE

Exchange.

Mn market: few producing nations ‐ Potential for OPEC like cartel

Q: How can States lacking in mineral Resources ensure access to

an uninterrupted future supply of metals at reasonable prices to

A: By looking to the seafloor. Many States have recognised the

.









Nauru has entered the international race to the bottom of

the ocean. Which PICs want to be next?



Opportunity for PICs to be an international hub

Norway has been for offshore Oil & Gas



• Through offshore resource extraction Norway has

become the 2nd richest country in the world.• Produced $1,500,000,000,000 from its continental

• Whilst Norway’s offshore petroleum production has

,

have ensured its long term economic future –

’ , , ,



Norway’s GDP Growth Driven by Offshore

Resource Exploitation

Exploitation began on Norwegian

continental shelf in 1971 – causing

rapid growth in GDP per capita to





PICs have an opportunity to play an important role in

providing much‐needed supply of metals to the world.

metals such as copper (3rd most used metal in the

world man anese 4th and nickel rovide and the role

they play in advancing human livelihood. Because these

services are not adequately quantified, they are often

given too little weight in policy decisions.

terrestrial mining industry, international metal markets,

and the role metals la in societ .



In all four

the worldevery uman e ng eserves goo ea an

shelter, em lo ment o ortunities, ualit

education, and freedom

poverty,

hunger and



How can the world achieve the economic

progress

requ re

o

ensure

ese

universal objectives are met?



A: B Unlockin the Value of New Sustainable Resources



Economic Growth Demands Metals











Water is essential to sustainable development.

<1% of world's fresh water is accessible for direct human uses.

Critical we do not waste what little water is available.

Copper and Stainless Steel are needed to distribute and store water

without

waste,

corrosion,

leaks

or

bacterial

contamination.

Potassium permanganate – 2nd only to chlorine

884M people still rely on drinking water from unimproved sources

such as ponds, streams, irrigation canals and unprotected dug

we s.

Almost one‐tenth of the global disease burden could be prevented

.





Stainless Steel



(requiring Ni and

Raw water handling, India

Mn) is relied upon

throughout the

world to

distribute clean

,

water.

Office Building Plumbing, China

Water distribution Pi in USA

Water Distribution Pipe, Canada

Stainless Steel Tap Italy



Stainless Steel Tap, Italy

Water Tank, ChinaWater Storage Tank, Japan

Reverse Osmosis Plant, Singapore

De Salination Plant, Saudi Arabia

A G E i t ibl



A Green Economy is not possible

without metals at affordable prices

1 Wi d T bi 500 k 12 C



1 Wind Turbine: 500 kg 12x more Cu to create

of Ni + 1000 kg of Cu 1kw than conventional ower eneration

l h l h h



An electric vehicle has over TWICE the Cu content

of the average car ‐ 2km of copper wiring

Ni and Cu

batteries in

.

Mn is needed for high strength

stee s eet to rep ace eav er m

carbon thus making vehicles lighter

reducing

vehicle

emissions.



Whilst metals are critical to development we are

running out of mineral Resources on land at a

time when demand is increasing. If demand

increases without a commensurate increase in

supply the price of minerals will become

unaffordable

to

the

world’s

poor.

DSM offers a new supply which will be critical in

meeting

increasing

demand,

and

PICs

have

a

unique opportunity to lead this new industry.



World co er consum tion 1900 – 2008 K TONNES

World production –1900: 495 kt; 2008: over 15 Mt







Mining lower grade material is environmentally

damaging as it requires moving more rock per tonne of metal recovered with attendant greater

surface area disturbance, higher fuel emissions

per

tonne

and

larger

waste

rock

dumps.

Mining Industry is being forced to produce from far



Mining Industry is being forced to produce from far

more angerous, remote, an pr st ne env ronments

on land







Unique opportunity here for PICs to lead the way in protecting the

planets overall environment by taking pressure off the land, which,

w s on y accoun ng or o e p ane s sur ace area, as een

subject to 100% of Ni and Cu mining.



DSM = No Deforestation





‐

• Diversity on a 40m rainforest tree can exceed 1 million living species;

• Rainforests among the most biodiverse places on Earth ‐ exceptional

biological richness on both landscape and local scales, across

axonom c groups. amma s, amp ans, rep es, r s, s ,

insects, vascular plant species etc.

• .

• Rainforests provide essential services such as clean air, water, rainfall and stable climate, and are a source of food and medicine.

• Increasing pressures on rainforests from hydrocarbon and terrestrial

mining projects, illegal logging, oil palm plantations, transportation

, , u u w .

• Forests are home to 80% of our terrestrial biodiversity.

. .

Nickel laterites occur in equatorial tropical rainforest regions



q p g

Unlike nickel laterites, access to and mining of underwater mineral

,

decrease

in

the

Earth’s

carbon

absorption

capacity



By avoiding deforestation DSM helps keep our planet green











DSM =



Minimal Overburden

and

Stripping

Underwater mineral deposits

enerall

occur

directl

on

the

seafloor and do not demand large

pre‐strips or overburden removal

of waste for every tonne of ore.





average mine strip ratio of 4.2:1 over a mine life of 37 years.

Construction of Escondida included stripping 180 MT of

was e us o ge o ore o y



was e us o ge o ore o y

Irreplaceable Andes Environment



‐

moved

in

pre‐

stripping

during

2001

alone!

Terrestrial mines 0.55% Cu



Wh di u 180 tonnes of the

Earth just to get 1 tonne of

Co er?

Is this the wisest

use

of

the

planet’s

environment?

DSM = Minimal Waste Rock &



Minimal Tailings

• Modern terrestrial open‐pit mining has very high

waste‐to‐product ratio.

• E.g. Porphyry copper deposits (the largest source of

copper ore) are averaging 0.55% Cu which means

99.45% is produced as tailings.

• Even more waste for old where recover rates can

be as little as 5‐10 grams of gold per tonne of rock

and

ore

mined.• Disposal of this waste (large volumes and toxic)

threat

posed

by

mining.

Tailings



DSM = Less Ore, Less Waste & Less Tailings

S fl b



Seafloor

Polymetallic

Lumwana

Copper

Ambatovy

Nickel

Eramet

Manganese

No u es M ne M ne M ne

Grade 43% MnO2,

1.3% Ni

0.74% Cu 1.04% Ni 43.10 % Mn

1.1% Cu

Overburden N/A Yes Yes Yes

Strip Ratio N/A 4.2:1 1.33:1 1:1

Ore Mined (Mtpa) 4.6 6.76 5.77 3.01 54 . . .

Tailings /Ore ratio 54% 99% 99% 57%

Tailings (Mtpa) 2.48 6.69 5.7 1.71 14

Ni Product (ktpa) 60 60

Mn Product (ktpa) 1,100 1,100

To obtain



equiv. metal from

Land Minin

1,092 Mt mined

+ 271 Mt tailin s

Nodule Mine

49.7 Mt tailings

’



Copper 5% 1%

rade

Ore per 4 mill tonnes 20 mill tonnes

annum

per annum

waste:ore)

Total tonnes 4mtpa 80mtpa

Terrestrial Copper Porphyry = 20x more tonnage

Irreplaceable Andes Environment – tens of millions of years to form.

After copper is mined the environment will NEVER return to previous

condition Yet 45% of world Cu comes from this fragile Andes



condition. Yet 45% of world Cu comes from this fragile Andes

environment!

The Peruvian Andes is famous

or ts un que an pr st ne



or ts un que an pr st ne

cloud forests



Rio Blanco porphyry copper deposit – pristine region of the Andes

mountains on the border of Peru and Ecuador. This is merely an

exploration camp, the mountain won’t exist after mining!



Levelling a 500Mt mountain just to get 3.15Mt of

u



Is this the wisest way to source our copper when

hundreds of millions of tonnes of Cu sits on the

seafloor

and

does

not

re uire

pre

strippin

or

deforestation?









Mountain levelled and replaced with huge waste pile and tailings

.



previous condition.

Peruvian Andes



Los Bronces open pit copper mine in Chilean Andes



Unique mountains

continue to be levelled



on land 24/7. This

summ t van s e n a

day. Is this sustainable?

DSM = Minimal Production Infrastructure





Ambatovy Nickel, Madagascar ‐

220km ore pipeline from mine to

processing plant through rainforestDSM = no rail/road/pipelines

DSM process plants can be constructed and operated in efficient

i

‘

it ’

ft

i

i

i t l

d t ti



mines ‘on site’ – often causing massive environmental devastation.

=

One of the greatest sources of pollution caused by global mining



One of the greatest sources of pollution caused by global mining

atmosphere.

“

ecological security threats in the world” (US EPA).

In contrast acids cannot be roduced in the ocean because

seawater is alkaline.

AMD at a sulphide‐rich nickel and copper ore deposit









Terrestrial mining often requires

miners to work in hazardous

and unsafe conditions with



and unsafe conditions with

significant chemical exposure

DSM: The New & SAFE ‘Mine Face’



• Increased GDP



• Increased GDP

• Employment

•

• Capacity Building

• ec no ogy rans er

• Foreign Investment

• Tax Revenue/Royalties – Health & education services etc.

…without the negative impacts generally associated with the extractive industry such as community dislocation and degradation of the national environment.





Cook Islands/

Kiribati



encourage

DSM

investment

and

achieve

these

positive

,



How much does it cost to build and

opera e a eep ea ne



Commercial terms of Regulatory Regimes must

reco nise:

• Unique challenges of starting a new industry –

“ ” ‐

technological risks are VERY HIGH

• DSM is not bankable

•

• Exploration costs are higher than on land

• Industry must develop new technologies

Prelude floatin LNG latform

488m long



488m long on

Semi‐Submersibles$600M buy or $450k per day hire



800

400

600



200

‐200

0

1 2 3 4 5 6 7 8 9 10 11 12 13

‐400

‐800

‐600

Very High

‐1000 Up‐Front

‐

‐1400

‐1200

CAPEX



Dredging industry moves 2 billion tonnes per annum off seafloor

Documents

NORI Presentation SOPAC DSM June 2011