Large seabed mineral reserves are within 1,000 mile radius of Am Samoa

Pago Pago, AMERICAN SAMOA — The total monetary value of seabed critical minerals in the South Pacific is estimated to be around US$20 trillion. This value includes vast reserves of cobalt, nickel, copper, manganese, and rare earth elements found in polymetallic nodules and other seabed deposits. These minerals are essential for green technologies, such as electric vehicle batteries, wind turbines, and renewable energy systems.

Specifically, Pacific island exclusive economic zones hold a large share of these resources, positioning the region for economic transformation but also raising environmental and governance challenges. Some estimates have suggested seabed mineral deposits within a 1000-mile radius of American Samoa alone amount to significant quantities, supporting local shifts towards high-value processing and battery manufacturing industries.

In summary, the seabed critical minerals in the South Pacific region could be worth about 20 trillion dollars in total monetary value, making it a highly significant resource area in the global critical minerals market.

Economic impacts of seabed mining on Pacific island nations are mixed but generally challenging, with slowing growth, persistent vulnerability to external shocks, and incomplete recovery from the pandemic.

The main drivers and obstacles include tourism, remittances, aid, commodity exports, and climate-related hazards. Tourism-based economies have rebounded but most have not regained pre-COVID GDP levels, while fishing-dependent nations and those with commodity revenues are faring better. Rising shipping costs, inflation, and global uncertainties remain major risks, and population growth in some Melanesian nations is outpacing modest economic recovery rates.

GROWTH TRENDS AND RECOVERY

•  Regional GDP growth is forecast at 2.6 – 4% in 2025, down sharply from 5.5% in 2023, with recovery lagging in countries like Cook Islands, Samoa, Palau, and Solomon Islands.

• Tourism remains the largest sector and driver of growth, with notable rebounds in places like Fiji, but reliance on imported goods and external grants makes economies sensitive to global fluctuations.

• The hardest-hit nations by the pandemic were those dependent largely on tourism, while fishery revenue and remittances helped cushion shocks elsewhere.

VULNERABILITIES AND STRUCTURAL ISSUES

Pacific island economies are highly exposed to climate change, natural disasters, and global policy volatility; foreign government grants make up nearly 40% of gross national income in some countries.

• Ongoing inflation — projected to fall but still above pre-pandemic levels — keeps living costs high and erodes household budgets.

•  Declining returns from commodity sectors, such as logging in Papua New Guinea and agriculture elsewhere, constrain sustainable growth.

OPPORTUNITIES AND RECOMMENDATIONS

• Increasing women's workforce participation could boost GDP per capita by over 20%.

• Investment in niche markets, sustainable industries, trade infrastructure, and economic diversification are key to long-term resilience, especially given the small scale and high costs associated with Pacific economies.

• External development support and innovative policy approaches (e.g., labor mobility schemes, targeted fiscal support) are critical for ongoing recovery and adaptation.

In summary, economic prospects for Pacific island nations remain fragile, shaped by their reliance on tourism, remittances, and aid, as well as by external shocks and climate risks. Growth is slowly returning, but many countries are still below pre-pandemic GDP levels and face ongoing structural challenges.

BACKGROUND

The Clarion-Clipperton Zone (CCZ) is a large environmental management area in the Pacific Ocean between Hawaii and Mexico, known for its deep-sea polymetallic nodules and unique ecosystems. The International Seabed Authority (ISA) administers the CCZ, which is currently the subject of increasing interest for deep-sea mining due to the valuable minerals found in the region. alone contains billions of tons of these minerals, contributing significantly to this valuation. This estimate reflects not only the economic potential but also the strategic importance of controlling these resources in global supply chains and geopolitical influence.

(Source: Perplexity search)