Kiribati is reportedly in discussions with China to explore deep-sea mining opportunities, signaling a potential shift in its approach to tapping into its vast offshore mineral resources.

The Pacific island nation holds the exploration rights to a 75,000 square kilometer area in the Pacific Ocean, a region believed to contain valuable deposits of cobalt, nickel, and copper — key materials for the global battery industry.

The talks between Kiribati and Chinese officials come after the collapse of a previous agreement with the Metals Company (TMC) (NASDAQ:TMC), a Canada-based deep-sea mining outfit.

TMC confirmed that the contract was terminated "mutually" at the end of 2024, stating that Kiribati's mining rights were "less commercially favourable than (its) other projects" with Nauru and Tonga.

In a Monday (March 17) statement, the Kiribati government described discussions with Chinese Ambassador Zhou Limin as "an exciting opportunity" to explore ways to potentially collaborate on exploring Kiribati's deep-ocean resources.

A fisheries official confirmed the government is seeking new foreign partners to advance its deep-sea mining ambitions.

Kiribati's engagement with China aligns with Beijing's broader push to secure access to critical minerals in the Pacific.

In February, China struck a five year deal with the Cook Islands to cooperate on seabed exploration, although the agreement does not include any mining or exploration licenses.

For its part, Kiribati has taken steps to deepen its ties with China in recent years, severing diplomatic relations with Taiwan in 2019. Since then, Chinese companies have gained rights to exploit Kiribati's profitable fisheries, and Chinese police personnel have visited Tarawa, the country's capital, to train local security forces.

Opposition leader Tessie Lambourne has expressed concerns about China's growing influence on Kiribati, stating, "I always say that our government is bending over backwards to please China."

While Kiribati and other Pacific island nations, such as Nauru, view deep-sea mining as a potential economic boon, opposition remains strong among some regional neighbors.

Palau, Fiji and Samoa have called for a moratorium on the industry, citing significant environmental concerns.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.