Zuni Energy plan to recover scrap from ocean floor

The economics of mining mineral-rich nodules on the ocean floor has been debated for years. And it’s almost a certainty this practice would not be feasible at today’s metal prices. But how about refined metals on the ocean floor: scrap iron, copper cables, old lead batteries? That’s really a new kettle of fish.

Vancouver-based Zuni Energy recently entered into a partnership with the government of the Marshall Islands to salvage one of the largest concentrations of scrap metals in the world. These metals include brass, bronze, copper, nickel, tin and lead in volumes of millions of pounds and steel in millions of tons.

The islands, which were under United Nations trusteeship following the Second World War, received their independence last October. Zuni has formed a wholly-owned subsidiary which will have the right to receive 65% of the profits from the proposed scrap recovery venture. The subsidiary’s profits will be split 60/40 between the operating company and a group of investors who put Zuni into the venture.

The company plans to pull abandoned cables with high copper and lead content from the ocean floor and non-ferrous metals from land and shallow waters. Sources for this material include: sunken ships, old generating stations, plus various stores and warehouses of military equipment. Negotiations are under way for the acquisition of equipment and supplies for the venture and the company says it expects a “substantial cash flow” in 1987.