Article - India’s $110 Billion Bet on Deep Sea Mining

Jai Siya Ram http://www.fxlive.in/ "Article - India’s $110 Billion Bet on Deep Sea Mining" What is it / What’s being planned Samudrayaan / Deep Ocean Mission India’s project to explore and exploit deep-sea mineral resources is part of its Deep Ocean Mission. The mission includes Samudrayaan, which is a manned deep-sea submersible to go down to ~6,000 metres. The National Institute of Ocean Technology (NIOT), under the Ministry of Earth Sciences, is the main implementing agency. Resources & Location India has been allocated a 75,000 sq. km area in the Central Indian Ocean Basin (CIOB) by the International Seabed Authority (ISA) for exploration. Within this area, preliminary estimates suggest ~380 million metric tonnes of polymetallic nodules (which contain copper, nickel, cobalt, manganese etc.). These resources are valued at roughly US$110 billion based on current mining, materials, and metals market estimates. Why this is seen as strategic/important India is heavily import-dependent for many of these critical minerals (used for batteries, electronics, green energy etc.). Access to domestic / under-Indian-control deep-sea reserves could reduce import dependency. The mission is also seen as part of India’s “blue economy” push — ocean science, marine biodiversity, sustainable use of ocean resources, possibly ocean-based climate change research etc. Key Projects & Capabilities Manned submersible “Matsya” (or “Matsya 6000”) that can take 3 scientists + equipment down to 6,000 m depth. Plans include trials in shallower waters first. Offshore / seabed auctions of mineral blocks: India has offered 13 blocks for deep-sea exploration in areas like the Arabian Sea and Andaman Sea, including polymetallic nodules, lime mud, construction sand. India is seeking technical partnerships — e.g., from the Netherlands (Royal IHC) for expertise in seabed mining. Budget & Timeline The Deep Ocean Mission was allocated some budget in recent Indian budgets (several thousand crores of rupees over years). Samudrayaan is expected to have its 500-m depth trial by the end of 2025; full 6,000-m dives planned by around end of 2026. Auction deadlines for blocks have been extended in several cases to allow more participation. Challenges & Risks Environmental concerns: Deep-sea ecosystems are poorly understood, fragile, and disturbance (sediment plumes, pressure changes, impact on marine life) could be significant. Technical challenges: Mining at 6,000 m depth is hard: extreme pressure, cold, remote operations, need for specialized submersibles, robotics, maintenance etc. India’s indigenous capabilities are improving but still developing. Regulatory & legal framework: International Seabed Authority (ISA) rules, environmental norms, licensing, extraction permits etc. India will need to ensure compliance with international and domestic law. Economic viability: Mining, extraction, transport of minerals from seabed, processing, all cost a lot; the value of minerals depends on market prices, demand, logistics etc. Local / stakeholder opposition: Fisherfolk, coastal state governments (e.g. Kerala) have raised concerns over environmental impact and livelihoods. What Could Be Unlocked / Potential Impacts Supply security for strategic minerals, especially for green tech and battery sector (nickel, cobalt etc.). Cost savings in imports if India can use its own reserves. Boost to research & innovation, especially marine robotics, underwater technology, oceanography. New jobs in high-tech sectors, marine engineering, mining, environment sciences. Blue economy growth — not just mining but related sectors (sea-based energy, ocean observation, possibly tourism etc.). What to Watch Next Progress of Samudrayaan submersible trials (500 m depth, then 6,000 m). Outcomes of the auctions of mineral blocks: who wins, what terms, environmental safeguards etc. Rules or regulation by ISA regarding commercial exploitation codes (once India surpasses exploration phase). Partnerships with foreign firms/institutes for technical support and investment. Domestic policy: amendments to mining/sea/ocean laws, state-level environment clearances, stakeholder consultations. Regards FXLive Chandan ((Tecnical Research Analyst in MCX Commodity + Cash Equity & Future/Options ))