The US has scheduled its first-ever offshore mineral lease sale for November 19, opening about 31.5 million acres of seabed off American Samoa to companies seeking nickel, cobalt, copper and manganese. Local leaders and environmental groups oppose it, and one group has sued.
At a glance
- Each of the two lease areas carries a minimum bid of $3 million and a 20-year primary term.
- Royalties would start at 2% for the first five years of commercial mining, then rise to 5%.
- Winning a lease allows only mapping and surveys at first; mining needs further approvals.
Background
Parts of the deep seabed are covered with polymetallic nodules, potato-sized rocks rich in nickel, cobalt, copper and manganese. Supporters say mining them could cut reliance on China for critical minerals, while scientists and environmental groups warn of lasting damage to little-understood ecosystems. American Samoa banned deep-sea mining in its own territorial waters in 2024.
What happened
The Interior Department's Marine Minerals Administration issued its Final Leasing Notice on Monday for a November 19 auction, the first offshore mineral lease sale in US history, gCaptain reported. The sale, called PACM-1, covers two areas of about 16.3 million and 15.2 million acres on the US Outer Continental Shelf near American Samoa.
"Critical minerals are no longer just commodities; they are a vital strategic asset in global competition," said Mike Olsen, the agency's acting director. He said the agency would balance development with environmental safeguards and engagement with local communities.
The terms
Each lease area has a minimum bid of $3 million and a primary term of 20 years. Royalties would start at 2% for the first five years of commercial mining and rise to 5% after that.
A lease would not immediately allow mining. Leaseholders could first carry out only mapping and environmental surveys, and further exploration and commercial extraction would need separate federal approvals and reviews. The sale follows an April 2025 executive order from President Trump and a request from US firm Impossible Metals to open leasing off the territory.
The opposition
American Samoa Governor Pulaali'i Nikolao Pula said in September that he "does not support commercial deep-sea mineral extraction at this time", while accepting that the final decision rests with Washington, AFP reported. Environmental group Earthjustice has filed a lawsuit seeking to block the sale. "These lease sales will open the floodgates to the exploitation of our deep seas," said Julia Singer of Oceana.
Our read
Outlook: neutral. Leases allow only surveys at first, and commercial mining is years away and needs further approvals. The sale does not change nickel or cobalt supply now.
What to watch
- Whether the November 19 auction draws bids, and from which companies.
- The outcome of the Earthjustice lawsuit seeking to block the sale.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-19: Marine Minerals Administration issues the Final Leasing Notice.
- 2026-11-19: First US offshore mineral lease sale scheduled.
Supply Drivers
Seabed nodules could one day add nickel, cobalt, copper and manganese supply outside China's influence.
Government Policies
The US is pushing deep-sea leasing as a national security priority despite local and environmental opposition.
Geopolitical Risks
The sale is framed as a way to reduce reliance on China-dominated mineral supply chains.
What could lift prices
- Legal challenges and further approvals could delay any seabed supply for years.
- Strong opposition may deter some bidders.
What could weigh on prices
- A new source of nickel and cobalt could eventually add supply.
- US backing for seabed mining could speed other nodule projects.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | It holds its first offshore mineral lease sale to secure critical minerals. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Mining | Positive | Seabed miners gain access to lease areas for the first time in the US. |
Who gains, who loses
- Impossible Metals: Its request helped open leasing off American Samoa.
- American Samoa's opponents of mining: The sale proceeds in federal waters despite the territory's opposition.
Other ways this could play out
- If the lawsuit succeeds, the sale could be delayed or blocked.
- If the sale goes ahead and draws bids, more US offshore lease sales could follow.
Price risks
- Commercial seabed mining remains years away, so near-term supply is unchanged.
- Environmental reviews could halt projects before any production starts.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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