A former chief executive of mining giant Rio Tinto is orchestrating a massive $1 billion merger that could reshape the emerging deep-sea mining industry.
Tom Albanese, who headed Rio Tinto from 2007 to 2013, announced Wednesday that his company American Ocean Minerals will combine with Odyssey Marine Exploration through an all-stock transaction. The partnership seeks to establish one of the globe’s most extensive collections of underwater mineral rights.
This latest consolidation reflects growing momentum in the deep-sea mining sector, which targets critical materials beneath ocean waters covering most of Earth’s surface. However, the industry faces significant opposition from environmental groups and several nations concerned about ecological impacts.
Despite ongoing diplomatic and regulatory hurdles preventing actual deep-sea extraction, Western governments including the United States are actively pursuing alternative mineral sources to reduce dependence on China’s market control.
Albanese’s American Ocean Minerals, established this year, focuses on harvesting polymetallic nodules scattered across vast Pacific seafloor areas. These formations contain valuable metals including cobalt, nickel, copper and manganese essential for modern technology.
The merger will combine Odyssey’s holdings—including stakes in Ocean Minerals and Cook Islands exploration rights—with assets from CIC Limited, where Albanese serves as chairman and holds additional Cook Islands permits.
Approximately 30% of Odyssey’s current investors have already endorsed the transaction.
Beyond the primary metals, AOM believes its licensed territories may yield rare earth elements and titanium. While initially planning to contract third-party refiners, the company may eventually construct its own U.S. processing facility.
“What we’re seeing now is a concerted, bipartisan need to find energy and minerals resources, and deep-sea mining is a key part of that,” Albanese told Reuters in discussing the venture’s strategic importance.
The deal includes $150 million from institutional investors through private placement, plus $75 million in pre-public funding. Notable backers include Emmy-winning television personality Mike Rowe, host of “Dirty Jobs.”
Upon completion anticipated by August, the merged entity will begin trading on Nasdaq using the symbol “AOMC.” Odyssey Marine’s stock price surged 88% to $1.57 following Wednesday’s announcement.
The company has petitioned Washington for two international licenses covering the Pacific’s Clarion-Clipperton Zone, creating potential conflict with the International Seabed Authority.
President Donald Trump indicated in January his administration would accelerate permitting for international mining operations.
The ISA, established under the UN Convention on the Law of the Sea which the U.S. hasn’t ratified, has spent years developing mining regulations without reaching final standards during last month’s meetings.
Another industry player, The Metals Company, has similarly requested Trump administration permits for international operations.
Financial firms Citigroup and Cantor Fitzgerald—led by Brandon Lutnick, son of Commerce Secretary Howard Lutnick—structured the private placement. Moelis & Co provided advisory services to Odyssey.
American Ocean Minerals plans to host a conference call Monday to detail the merger terms.
