TMC the metals company Inc. (Nasdaq: TMC) signed a commercial agreement with offshore contractor Allseas to develop the first deep-sea nodule collection system, targeting 3.0 million wet tonnes per annum from the Clarion Clipperton Zone in the Pacific Ocean.
"This Agreement with Allseas is now the contractual cornerstone of our strategic alliance," Gerard Barron, Chairman and CEO of The Metals Company, said. "It establishes a clear commercial framework for how we complete the development and commissioning of our first commercial scale nodule recovery system and start offshore nodule recovery operations.”
The system will feature two robotic collector vehicles operating at depths of over four kilometers, a four-kilometer-long riser pipe, and the surface production vessel Hidden Gem. The agreement builds on a 2022 pilot test that successfully lifted 3,000 tonnes of polymetallic nodules. Allseas will fund a significant portion of the development, with subcontracts expected by the end of Q3 2026 and system commissioning slated for Q4 2027.
The deal moves TMC from exploration to planned production, aiming to supply critical metals for batteries and infrastructure. The project's success now hinges on obtaining the final required permits from the National Oceanic and Atmospheric Administration (NOAA) and the International Seabed Authority ahead of the 2027 commissioning target.
The agreement marks a significant step for the nascent deep-sea mining industry, formalizing a partnership that began with a strategic alliance in 2019. The offshore production system’s design reflects the initial phase outlined in TMC's S-K 1300 Preliminary Feasibility Study for its NORI Area D project. Allseas, a major TMC shareholder and a leader in offshore engineering, will complete the procurement, integration, and operation of the system.
Collected nodules will be transferred from the Hidden Gem to bulk carriers at sea for transport to onshore processing facilities. The companies have already completed conceptual and basic engineering for long-lead components, including the riser, the umbilical connecting the collector vehicles to the surface, and the Launch and Recovery Systems (LARS).
Following the announcement, shares of TMC rose 6.7% in premarket trading on May 11.
This article is for informational purposes only and does not constitute investment advice.
