Norwegian Sea Bed Mining Faces Setback Amid Political Shifts

Shares in Green Minerals, a Norwegian sea bed mining start-up, dropped 36% after the government postponed a licensing round. The move followed support for the government budget from a small leftwing party opposing deep-sea mining. Green Minerals expects the delay to be temporary, continuing preparatory work for a 2026 first ore timeline.

Shares in the Oslo-listed deep-sea mining company, Green Minerals, plummeted by 36% following the Norwegian government's surprising decision to scrap its first licensing round targeted for early 2025. The reversal came after a minority governmental budget agreement with a small environmentalist party opposing plans to mine the Arctic seabed.

Despite the setback, Green Minerals remains optimistic that the delay will be short-lived, maintaining its timeline for first ore extraction by late 2020s. Bergen-based seabed mineral company Adepth echoed this sentiment, projecting a 9-12 month postponement on licenses. Both companies are aligned with prep work and environmental mapping still in progress.

The delay arises amid political uncertainty, with two major opposition parties backing deep-sea mining. Norway's government aims to tap into the Arctic seabed, rich with crucial metals for moving away from fossil fuels, despite backlash from numerous green advocates and an alliance of 32 countries.

(With inputs from agencies.)