Shares in Green Minerals (GEM.OL), a Norwegian seabed mining start-up, experienced a dramatic decline of 36% on Monday following the Norwegian government’s decision to cancel its first licensing round for deep-sea mining. This decision was made in exchange for support for the government’s annual budget.
Key Highlights:
Government Decision:
A left-wing environmentalist party successfully blocked plans for Arctic seabed mining, leading to the cancellation of the licensing round.
The government had intended to issue exploration permits in the first half of 2025 but will now focus on preparatory work, including regulatory frameworks and environmental impact assessments.
Market Reaction:
Green Minerals’ shares closed at 4.17 Norwegian crowns on Monday. Despite the setback, the company maintains that the halt is expected to be temporary.
The company stated, “We do not change our estimated timeline for first ore, still expected to take place in the very end of the 2020s.”
Industry Impact:
Another Norwegian start-up, Adepth, echoed similar sentiments, anticipating a 9-12 month delay in issuing licenses.
CEO Anette Broch M. Tvedt criticized the government’s indecisiveness, noting a contradiction to the parliamentary mandate favoring deep-sea mining.
Political Context:
With elections approaching in September, two leading opposition parties, the Conservatives and the Progress Party, support deep-sea mining, which may influence future policy decisions.
Future Outlook:
Green Minerals expects a “slightly accelerated timeline” for licensing, aiming for awards “sufficiently early in 2026” to align with exploration timelines.
Resource Potential:
Norway has been positioning itself as a leader in seabed mining, with preliminary estimates indicating substantial deposits of metals and minerals, including copper and rare earth elements, crucial for transitioning away from fossil fuels.