Norway's minority government and opposition parties on Tuesday reached a deal to allow mineral exploration in the Arctic seabed, despite strong pushback from environmental groups amid concerns about its damage to marine ecosystems.

By some estimates, Norway is seeking to open up an area of some 280,000 square km - roughly the size of the country of Italy - for exploration and mining of copper, gold and rare earth minerals.

The planned zone is southwest of the Arctic island of Svalbard, an archipelago between mainland Norway and the North Pole.

Environmental concerns

The parliamentary deal is a vital step before full-scale ocean mining on a commercial level begins.

But Norway’s environment agency has criticised the deep sea mining, saying it can have "significant and irreversible consequences for the marine environment."

Campaign groups like Greenpeace Norway have labelled the decision a "disaster for the sea" that would impact "our last wilderness."

The organisation says it remains unclear the fallout of deep sea for minerals on marine life, including endangered species like whales, seabirds and fish.

Martin Sveinssonn Melvaer, part of Bellona, a non-profit environmental group, called Norway’s decision "completely contrary to scientific recommendations" and a "derailment" of the fight against global climate crisis.

In a written communique endorsed by several other organisations, Bellona said the plan lacks "sufficient knowledge" and "violates Norway's national and international obligations."

Karoline Andaur, chief executive of wildlife organisation WWF Norway described it as "the biggest disgrace in Norway's management of the oceans in modern times and the final nail in the coffin for Norway's reputation as a responsible maritime nation."

The UK and Norway's fishing industry have also voiced opposition to plan.

Norway's minister for petroleum and energy, Terje Aasland, told local media that the government would seek to "do this carefully," insisting on a measured approach that involves collecting more data before extraction.

A mad mineral rush

Norway, which has a population of less than 6 million people, is one of the largest oil producers in the world. Over the decades, the Scandinavian country has accumulated oil revenue of $1.4 trillion - the largest sovereign wealth fund in the world.

But oil and gas reserves are depleting and newer technologies like electric cars and solar panels are dependent on rare earth minerals.

As it happens, China has come to dominate the rare earth minerals supply chain. This has unnerved European politicians who now want to secure a steady stream of minerals from their economies.

The demand for important minerals such as nickel, cobalt and lithium is predicted to increase in coming years.

Norway’s deep sea mining proposal will be debated on January 4, followed by a vote.

Its backers say the proposal contains even tighter environmental assessment requirements for the exploration phase than before.

The agreement was reached between two parties in Norway's minority government - the Labour and Centre Party and the opposition's Conservatives and Progress Party.

Petroleum firms back the idea

If the proposal goes through, experts say it would likely follow similar guidelines to Norway's oil and gas sector, which itself backed the initiative.

In June, Norway announced its bid to open up areas of its continental shelf for commercial deep-sea mining to derive new revenue streams.

Most minerals are found in small rocks called polymetallic nodules that are rich in cobalt, nickel and other valuable metals and used to produce electric batteries and wind turbines and drive other green industries.

The Norwegian government’s proposed area also contains volcanic springs and is home to an estimated 38 million tonnes of copper - believed to be more than global annual copper production.

In 2021, multinationals such as Google, BMW, Samsung, and Volvo Group signed a WWF petition pushing for the end of ocean mining, insisting "mining in water thousands of meters deep is expected to have destructive effects on vulnerable deep-sea ecosystems and lead to loss of biodiversity and species extinction."

Potential geopolitical impact

According to reports, geopolitical tensions exist in the northern part of Europe's Baltic region.

Norway is pushing to open the area to exploration, specifically the Barents Sea and Greenland Sea.

Oslo lays sole claim to the region despite pushback from Russia, the UK and the European Union, who refute the claim.

While international law concerning seabed mineral exploration must be determined, Norway may not have to wait as the push for minerals is on its extended continental shelf.

Norway's bid to tap into its resources follows a global trend.

Miners worldwide, including in China, Japan and New Zealand, have also been researching and investing resources to extract precious metals in their respective waters.

But commercial deep-sea mining hasn’t yet started and Norway appears on track to become the first country to do so.