Deep sea mining may not generate financial benefits
In a maximum production scenario, the promoter estimated revenues of around $480 million a year for ISA, but the report estimates an average value..
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Summary
In a maximum production scenario, the promoter estimated revenues of around 480 million dollars per year for ISA, but the report estimates a probable average value of approximately 260 million dollars. For sponsoring states, economic benefits are even less significant and in 48% of simulations carried out, projects would not generate any revenue through corporate income tax. On the other hand, the report states that the likelihood of investment never recovering initial capital is around 60% and points to the risk of increased investment costs as the main factor that reduces profitability.
Furthermore, Looking at different scenarios, including under conditions less favourable to those initially foreseen by the project promoter, analysts concluded that in almost all (83%) the project would be impaired. In years of maximum production, land producers’ losses could amount to around 1.9 billion dollars, according to the analysis, while ISA’s revenues would be close to 1.1 billion dollars, in particular harming countries such as South Africa, Indonesia and the Democratic Republic of Congo. According to the United Nations Convention on the Law of the Sea (UNCLOS), the mineral resources of the seabed beyond national jurisdictions are considered a common heritage of humanity and its exploitation is managed by ISA, which must ensure a fair distribution of economic benefits.
In addition, The commercial exploitation of polymetallic nodules in the Pacific may not generate net financial benefits to the international community or to the project sponsor states, due to the high associated risks, concludes an analysis commissioned by environmental organizations.
Cross-referenced from 3 sources.
Factual coreconfirmed by several independent voices
In a maximum production scenario, the promoter estimated revenues of around 480 million dollars per year for ISA, but the report estimates a probable average value of approximately 260 million dollars.
reliability low1/3 sourcesFor sponsoring states, economic benefits are even less significant and in 48% of simulations carried out, projects would not generate any revenue through corporate income tax.
reliability low1/3 sourcesOn the other hand, the report states that the likelihood of investment never recovering initial capital is around 60% and points to the risk of increased investment costs as the main factor that reduces profitability.
reliability low1/3 sourcesLooking at different scenarios, including under conditions less favourable to those initially foreseen by the project promoter, analysts concluded that in almost all (83%) the project would be impaired.
reliability low1/3 sourcesIn years of maximum production, land producers’ losses could amount to around 1.9 billion dollars, according to the analysis, while ISA’s revenues would be close to 1.1 billion dollars, in particular harming countries such as South Africa, Indonesia and the Democratic Republic of Congo.
reliability low1/3 sourcesAccording to the United Nations Convention on the Law of the Sea (UNCLOS), the mineral resources of the seabed beyond national jurisdictions are considered a common heritage of humanity and its exploitation is managed by ISA, which must ensure a fair distribution of economic benefits.
reliability low1/3 sources
Reported detailssecondary facts, each attributed to its source
The commercial exploitation of polymetallic nodules in the Pacific may not generate net financial benefits to the international community or to the project sponsor states, due to the high associated risks, concludes an analysis commissioned by environmental organizations.
according to Jornal Económico
Disputedincompatible versions — to verify
No factual contradiction detected between sources.
Framing by sidesame fact, different words — loaded terms highlighted
No notable framing divergence.
Blind spotwhat one side keeps silent
No blind spot detected: every side covers the same facts.
Sources3 sources cross-checked
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