The uptick comes after the National Oceanic and Atmospheric Administration updated regulations on deep sea explorations, pushing for speedy permits for U.S. companies.
- As per the new rule, licensing and permitting process for deep-sea explorations will be consolidated into a single and shorter review.
- Under the new regulations, U.S. companies will be able to choose from either the new consolidated option or abide by the prior sequential approach.
- The Metals Company said in a statement that it intends to submit a consolidated application pursuant to NOAA’s updated regulations.
Shares of The Metals Company Inc. (TMC) surged nearly 9% in Wednesday’s after-market hours after closing 13.31% higher.
The uptick comes after the National Oceanic and Atmospheric Administration (NOAA) updated regulations on deep-sea explorations on Wednesday, pushing for speedy permits for U.S. companies searching for critical minerals in international waters.
Faster Process
As per the new rule, licensing and permitting process for deep-sea explorations will be consolidated into a single and shorter review. “The revisions establish a consolidated DSHMRA exploration license and commercial recovery permit application process, which is effective on the date of publication,” NOAA said in a statement.
Since Congress passed the Deep Seabed Hard Mineral Resources Act (DSHMRA) in 1980, U.S. applicants have been required to follow a two-step process for deep seabed mining beyond national jurisdiction. First, they would have to secure an exploration license, and then later apply to NOAA for a commercial recovery permit.
Under the new regulations, U.S. companies will be able to choose from two options. They could choose to use the sequential approach, or instead choose a new consolidated application process that will allow them to apply for and obtain both the exploration license and the commercial recovery permit simultaneously for deep sea mining activities.
“Deep seabed mining is key to unlocking a domestic source of critical minerals for the United States,” said Neil Jacobs, Ph.D., NOAA administrator. "This consolidation modernizes the law and supports the America First agenda by enabling U.S. companies to access these resources more quickly, strengthening our nation’s economic resilience and advancing the discovery and use of critical seafloor minerals."
TMC’s Choice
TMC said in a statement that it welcomes the move and intends to submit a consolidated application pursuant to NOAA’s updated regulations, adding that it anticipates that the new consolidated review process will reduce the time required to secure a commercial recovery permit for the company.
“This new rule represents a meaningful modernization of the U.S. regulatory framework for deep seabed nodule collection and acknowledges the significant advances the industry has made since the U.S. regime was first established,” said Gerard Barron, Chairman and CEO of TMC.
“Importantly, this framework applies only to companies that have completed the necessary exploration, environmental, and technological development work. The updated regulations align well with TMC USA’s long-term strategy and support a thoughtful transition from exploration to commercial production, and we look forward to submitting a consolidated application soon,” Barron added.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around TMC shares traded in the ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes.
One bullish user said that the permit would boost the stock price to $15-$20 or more.
Another bullish user estimated the potential future share price of the company at $58.40, based on execution and permitting progress by 2027.
Shares of TMC have more than quadrupled in the past year.
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