ROYALIHC.COM

From dredging to deep sea mining

Henk van MuijenRoyal IHC - Mining

Royal IHC is:

• Based in The Netherlands with two shipyards, offices worldwide & over 3000 employees• A technical service supplier for marine industry, mining, oil & gas and renewables• A dredging equipment supplier• A mining equipment supplier• An offshore O&G and renewable energy construction equipment supplier• Integrates its own equipment and that of others into the ships it builds

INTRODUCTION TO ROYAL IHC

• Large volumes of sand suppletion for land reclamation, beach nourishment

• Deeper depths, long transportation

• Construction & maintenance of ports, canals and entrance channels

Land reclamation

Rehandling

Dubai

Dredging industry: some examples

Rehandling

Standard dredging equipment

Marine mining: some examples• Long time application of

dredgers in marine mining applications

• Tin mining in Indonesia• Aggregate mining in North Sea

and Baltic Sea• Diamond mining offshore

Namibia and South Africa

Tin mining

Aggregate miningAggregate mining

Diamond mining

DEEP SEA MINING

Mining Support Vessel

Vertical Slurry Transport System

Seafloor Mining Tool

Excavation

Propulsion

Vertical transport

Power supply

DSM application

Control room

Trencher

Diamond mining unit

TECHNOLOGY & OPERATIONAL CHALLENGES: REQUIRED EXPERTISE

DEEP SEA MINING

7

GDP per capita

Consequences economic growth and growing population: growing needs of minerals.

Steel/Copper Nickel Titanium

DiamondsUSACHINA

Lithium Ion batterieso NCA: Cathode: 80% nickel, 15%

cobalt and 5% aluminiumo NCM: Cathode: Equal parts of nickel,

manganese, and cobalt

Fact: 43% of cobalt demand comes from Lithium Ion batteriesFact: Cobalt production - 98% by-product of nickel and copper productionFact: 54% of cobalt production 2016 from Dem. Rep. CongoSource: Mining Journal 8-21 September 2017

8Consequences Green Economy.

Target mineralsOffshore placers: Diamonds, gold, tin, heavy minerals (Ti-Zr)

PhosphatesCobalt Rich Crust (Co, Mn, Ni)

Seafloor Massive Sulphides (Cu, Au, Zn)Nodules (Mn, Ni, Cu, Co, REE)

Source: GRID-UNEP

Methane Hydrates

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Poly metallic nodules:

Manganese 29%Nickel* 1.4% Copper* 1.3% Cobalt* 0.25% Rare Earth* tracesMagnesium 0.5% Potassium 0.5% Titanium 0.2%

Focus SEABED RESOURCES

SMS deposits:

Copper* 7 - 8% Zinc* 2 – 3 %Gold* 3 – 5 g/tSilver* 23 – 56 g/t

Methane Hydrates:

Energy resource

Mining project development: RISK MINIMIZATION

Challenges + innovation- Technology- Business plans- Separation process- Legislation- Ecology Measured Proven

Inferred

ProbableIndicated

Mineral resourcesReported as in situ mineralization

estimates

Ore reservesReported as mineable production

estimates

Consideration of mining. Metallurgical. Economics, legal, environmental, social, governance factors. (modifying factors)

Wet mining knowledge gap

Increasing level of

geoscientific knowledge and

confidence

UNCERTAINTY

Mining projects

Mining operation

USE OF RESOURCES

DEEP SEA MINING: TECHNOLOGY DEVELOPMEN

= trl 7 = trl 9

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Dredge Pump

Dredge Pump

Propulsion System

Vertical Transport System

Seafloor Mining ToolOperating depth = 1 – 5 km

below surface

Excavating Tool

Blue mining: VTS technology

BLUE NODULES: crawler development -

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Technology development: Integration is key !!

• Separate systems up to TRL 8/9

• Integrated system also up to TRL 8/9

• System integration test required with full size unit; low capacity

• Prerequisite before entering in commercial (pilot mining) test

15Mining Support Vessel

Vertical Slurry Transport System

Seafloor Mining Tool Excavation

Propulsion

Vertical transport

Power supply

SUSTAINABLE DEEP SEA MINING CHALLENGES

• Potential mining impact • Knowledge-gap deep-sea

ecosystems and potential environmental impacts

• Mitigating measures• Capacity building

Turbidity

Waste water

Oil leakage

Underwater noise

Energy usageEmission

GEOPOLICY + DEVELOPING LEGISLATION

Leadersʼ Declaration G7 Summit Germany, 7-8 June 2015Protection of the Marine EnvironmentWe acknowledge that marine litter, in particular plastic litter, poses a global challenge, directly affecting marine and coastal life and ecosystems and potentially also human health. Accordingly, increased effectiveness and intensity of work is required to combat marine litter striving to initiate a global movement. The G7 commits to priority actions and solutions to combat marine litter as set out in the annex, stressing the need to address land- and sea-based sources, removal actions, as well as education, research and outreach.We, the G7, take note of the growing interest in deep sea mining beyond the limits of national jurisdiction and the opportunities it presents. We call on the International Seabed Authority to continue, with early involvement of all relevant stakeholders, its work on a clear, effective and transparent code for sustainable deep sea mining, taking into account the interests of developing states. Key priorities include setting up regulatory certainty and predictability for investors and enhancing the effective protection of the marine environment from harmful effects that may arise from deep sea mining. We are committed to taking a precautionary approach in deep sea mining activities, and to conducting environmental impact assessments and scientific research.

1. Acknowledging growing interest/opportunities in DSM2. Requirements for development of legislation3. De-risking + interests of all stakeholders4. Effective protection of marine environment5. Precautionary approach based on assessments + scientific research

STAKEHOLDER DIALOGUE:BUSINESS MODEL CHALLENGES; PLAYING FIELD / MINING CYCLE; UNDERSTANDING EACH OTHERS OBJECTIVES & REQUIREMENTS

Innovator

Investor

Operator

Manufacturer

ConcessionHolder

AuthorityMarket

NGO / Public

CONCLUDING REMARKS

• Marine environment is challenging; this makes marine mining different from land mining

• Deep sea mining is even more challenging due to depth and distance• Use of available knowledge and experience from different disciplines• Sustainability is of utmost importance; can be show stopper• Combination of mining principles, environmental control and legislation is

necessary; to be addressed in stake holder dialogue • Due to scarcity of resources, marine and deep sea deposits are of interest• Societal discussion: renewable minerals demand versus mining in the marine

environment

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IHC Mining BV

Smitweg 6, Kinderdijk

P.O. Box 92960 AA Kinderdijk The Netherlands

T +31 88 015 25 35

mining@royalihc.comwww.royalihc.com

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