A legal battle between two deep sea mining companies is unfolding in British Columbia, raising fresh questions about competition, regulation, and access to critical minerals in the Pacific Ocean.
On January 16, American Metal Inc. filed a lawsuit in B.C. Supreme Court against TMC The Metals Company Inc. (Nasdaq: TMC), alleging the Vancouver based miner used “unlawful intimidation” to block a rival’s bid for exploration rights in the Clarion Clipperton Zone.
The disputed seabed area, located between Hawaii and Mexico, is estimated by TMC to contain mineral resources worth approximately US$23.6 billion. The region is known for its polymetallic nodules, which contain nickel, cobalt, copper, and manganese and are considered strategically important for battery and clean energy supply chains.
According to the claim, tensions emerged after former TMC executive Robert Heydon was terminated in January 2024. Heydon later formed American Metal and began preparing an application with the U.S. National Oceanic and Atmospheric Administration (NOAA) to secure exploration rights in the same region long pursued by TMC.
The lawsuit alleges that TMC chairman and CEO Gerard Barron pressured Heydon to delay his application through financial and legal threats. Barron allegedly warned of an “Armageddon situation” involving litigation and financial retaliation if American Metal proceeded.
“Given his prior experiences with Mr. Barron, Mr. Heydon took such threats seriously,” the lawsuit states.
American Metal claims it temporarily suspended its application and entered negotiations with TMC. Under a confidentiality agreement signed in April 2025, Heydon allegedly shared sensitive exploration coordinates and delayed filing with NOAA.
The following day, TMC publicly announced that it had submitted its own commercial recovery application.
“Today marks a major step forward—not just for TMC USA, but for America’s mineral independence and industrial resurgence,” Barron said at the time.
The permit application, filed shortly after an executive order from U.S. President Donald Trump seeking to accelerate seabed mining, covered more than 25,000 square kilometres in the Clarion Clipperton Zone and included areas claimed by American Metal.
The lawsuit alleges that TMC “lied or knowingly misled” its rival in order to secure government priority and dominate the permitting process.
The legal dispute unfolds against a backdrop of growing geopolitical and regulatory uncertainty around deep sea mining. In April 2025, Trump issued an executive order challenging the authority of the International Seabed Authority and encouraging companies to pursue permits under U.S. law.
ISA Secretary General Leticia Carvalho expressed “deep concern” at the time, warning against attempts to bypass the UN body’s mandate.
TMC has argued that seabed nodules can be recovered with lower environmental and social impacts than land based mining. The company says pilot tests and peer reviewed research indicate that impacts are largely confined to mined areas.
Opponents counter that mining could damage poorly understood deep ocean ecosystems and disrupt carbon storage processes.
In its lawsuit, American Metal is seeking damages for lost investment and profits, as well as a court declaration placing a “constructive trust” over any NOAA licences awarded to TMC in disputed areas. The company argues that monetary damages alone are insufficient given the unique nature of the seabed claims.
Shortly after the lawsuit was filed, NOAA released revised regulations streamlining exploration and commercial recovery applications. TMC subsequently submitted a new application expanding its proposed mining area to roughly 65,000 square kilometres.
It remains unclear how the revised application will affect the legal proceedings.
TMC has not yet responded publicly to the allegations. Under B.C. law, defendants have between 21 and 49 days to file a response, depending on location.
None of the claims have been tested in court.