USA - Odyssey Seeks Compensation Under NAFTA For Deep-Sea Mining Project
U.S.-based Odyssey Marine Exploration hasn’t given up its intentions to move forward with a phosphate seabed mining project in Mexico’s Exclusive Economic Zone (EEZ), despite two permit rejections.
The Florida-based company, through its Mexican subsidiary Exploraciones Oceánicas, aims to dredge phosphate sands from one of the American continent’s biggest deposits of the fertilizer.
The asset, located 40 km off the Pacific coast of Baja California Sur state, contains 588 million tonnes of phosphate ore, which places it ahead of other major deposits located in Brazil and Peru, the company says.
Mexico’s environment ministry rejected in 2016 and 2018 the company’s environmental permit application for the project. It said at the time that the development posed risks for species in the area including whales, dolphins, orcas, sea lions, birds and sea turtles.
In response, the company took the case to a binational arbitration panel, claiming US$3.5-billion in compensation for damages under Chapter XI of the North American Free Trade Agreement (NAFTA).
Releasing results for the second quarter, Odyssey continued to work through diplomatic channels to resolve the dispute while its legal team advances two separate processes.
“We continue to work in good faith with the current administration to reach a mutually beneficial outcome for the project,” CEO Mark Gordon said.
“While we are hopeful an agreement will be reached, we must continue to pursue our NAFTA claim against Mexico to protect our shareholders’ rights,” Gordon noted.
Odyssey believes the project is essential to Mexico’s food sovereignty, as it would reduce the country’s dependence on fertilizer imports.
The company aims to mine phosphate from the seabed through underwater dredging. The technology, says the company, poses minimal risk to aquatic habitats, and it has been used for over 30 years across the world.