U.S. Sets November 19 for First Deep-Sea Mining Lease Auction

The Trump administration scheduled for November 19 the first deep-sea mineral leasing auction in the history of the United States, which will open more than 31 million acres of seabed near American Samoa to companies seeking critical minerals. The Department of the Interior's Marine Minerals Administration (MMA), formerly known as the Bureau of Ocean Energy Management, published the final notice of sale on Monday, October 19, the last administrative step before companies can bid for exploration rights and the eventual development of mineral deposits on the U.S. Outer Continental Shelf.

The auction, called PACM-1, comprises two lease areas totaling approximately 31.5 million acres: one of 16.3 million acres and another of 15.2 million acres. Each area has a minimum bid of $3 million and a primary lease term of 20 years, with production royalties starting at 2% during the first five years of commercial mining and rising to 5% thereafter. Companies interested in participating had to submit their bids by November 18, one day before the auction. Winning a lease does not immediately authorize extraction: leaseholders will only be able to carry out preliminary activities such as mapping and environmental surveys, while more extensive exploration and commercial extraction will require additional federal approvals and environmental reviews.

To move forward on an accelerated timeline, the MMA invoked a provision of the Outer Continental Shelf Lands Act (OCSLA) that allows for an exclusive U.S. auction outside the oversight of the International Seabed Authority (ISA), thereby avoiding the debate over whether that body should license mining activity. The environmental organization Earthjustice filed a lawsuit seeking to block the auction, arguing that the OCSLA does not authorize mineral leasing in an unincorporated territory such as American Samoa and that the administration failed to meet its obligations under international treaties.

The announcement drew strong criticism from environmental groups. Oceana noted that the proposed lease areas are close to the Rose Atoll Marine National Monument, a protected area home to sea turtles, humpback whales, and other species. According to researchers and environmental organizations, polymetallic nodules take between two and three million years to regenerate if removed, and deep-sea mining could generate sediment plumes containing heavy metals that affect species beyond the immediate extraction sites.

American Samoa's Governor, Pulaali'i Nikolao Pula, called during the consultation process for greater environmental monitoring, protections for tuna fishing, and more oversight of vessels using the Port of Pago Pago, as well as consideration of the cumulative effects of mining-related maritime traffic on port infrastructure. He also requested a share of federal mineral leasing revenues, to which the MMA responded that current law does not provide for such a revenue-sharing arrangement.