Seabed mining and arbitration: Deep water, deeper uncertainty

The United States President's Executive Order, directing US agencies to licence deep seabed mining under the Deep Seabed Hard Mineral Resources Act (DSHMRA), has created significant legal uncertainty for companies considering investment in this sector.

Public debate has focused on whether the Executive Order bypasses the International Seabed Authority (ISA) orviolates customary international law. However, an equally pressing question is whether the anticipated activities will give rise to disputes, both between private contractors and in investor-state disputes, and the role arbitration will play in resolving them.

This article examines the pathways through which arbitration might become a forum for deep sea mining disputes for companies involved in US-licensed deep sea mining and provides practical guidance for managing the risks.