RESUMED THIRD SESSION OF INTERNATIONAL SEABED AUTHORITY CONCLUDES, KINGSTON, 18-29 AUGUST
Press Release
SEA/1569
RESUMED THIRD SESSION OF INTERNATIONAL SEABED AUTHORITY CONCLUDES, KINGSTON, 18-29 AUGUST
19970903 Approves First Work Plans of Pioneer Seabed Investors; Mining Code Advances, $4.7 Million Budget Set for 1998(Received from the International Seabed Authority; delayed in transmission.)
KINGSTON, 29 August -- A "green light" for exploring the mineral wealth of the deep seabed was given this week at Kingston, during the resumed third session of the International Seabed Authority, held from 18 to 29 August.
For the first time since the creation of the new legal regime for the world's oceans under the 1982 United Nations Convention on the Law of the Sea, approval was given to the plans of work submitted by seven "pioneer investors" interested in searching defined areas, mostly in the Central Pacific, for potential mining sites. Their goal is to locate economically exploitable deposits of polymetallic nodules -- rich in manganese, nickel, cobalt and copper -- lying miles below the ocean surface in areas beyond national jurisdiction.
The action by the Council of the Authority, which met along with the Assembly at the semi-annual session just ended, authorizes the Authority's Secretary-General, Satya N. Nandan, to issue contracts to the seven investors. These contracts will bind them to comply with obligations that include international monitoring of their activities, measures to protect the marine environment and the establishment of training programmes for personnel from developing countries.
Work continued in the Legal and Technical Commission on a detailed mining code that will spell out the obligations of the Authority and the investors. The Commission produced a third draft of the code and said it expected to complete the task when the Authority convenes its next session at its Kingston headquarters, from 16 to 27 March 1998.
Two steps were taken to clarify the relationship between the Council, an intergovernmental policy body of 36 members, and the 22-member Legal and Technical Commission, composed of independent experts elected by the Council.
First, a compromise agreement was reached enabling up to 15 observers from Council members to sit in Commission meetings as it works on the mining code. Second, a procedure was agreed under which Council members, before giving the go-ahead to contracts, examined folders of non-published materials supplied by the investors to the Commission in support of their work plans.
These compromises were worked out at the initiative of a number of developing countries that sought greater transparency in the work of the Commission and the Council. Several developed countries, and sponsors of investors, stressed the need to avoid outside interference with the technical work of the Commission.
The Assembly adopted a 1998 budget of $4,703,900 for the Authority and set a scale of assessments for its 135 members, based on the United Nations scale. This is up from $4,150,000 in 1997, reflecting the "evolutionary approach" endorsed by the Assembly last August that would enable the Authority to assume its functions gradually over a three-year period ending in 1999. Next year will mark the first in which the Authority will be funded by its own members rather than by the United Nations.
Plans of Action by Pioneer Investors
The Council, on 27 August, noted that the plans of work submitted by all seven pioneer investors registered with the Authority "are considered to be approved", and requested Secretary-General Nandan to issue these plans in the form of contracts. Its decision (document ISBA/3/C/9) was taken without objection on the recommendation of the Legal and Technical Commission (document ISBA/3/C/7), which reviewed the investors' requests for approval of their plans.
The wording "considered to be approved" is taken from the 1994 Agreement relating to the Implementation of Part XI (seabed provisions) of the Law of the Sea Convention, which provides for a nearly automatic approval process in the case of pioneer investors.
The paragraph in the decision authorizing the issuance of contracts was amended on the proposal of Jamaica to ensure that the contracts would incorporate obligations set out in the basic instruments governing pioneer investment: the Convention, the Agreement and resolution II of the Third United Nations Conference on the Law of the Sea, adopted along with the Convention in 1982. Contracts would also incorporate the regulations in the mining code, the Council decided.
To meet a request by several developing countries on the Council for more information on the plans of work, folders containing supporting information on each plan were made available for Council members to peruse
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before they acted on the plans. This material has not been made public, but Secretary-General Nandan stated that further details would eventually be published in the form of schedules to each contract.
In the discussion, some developing members expressed concern that the Council was being asked to act without all the information it needed, while many developing countries, including sponsors of pioneer investors, observed that the approval process was designed to be largely automatic.
The seven pioneer investors were registered between 1987 and 1994 by the Preparatory Commission for the International Seabed Authority and the International Tribunal for the Law of the Sea. In order of approval, they are:
-- Government of India
-- French Institute of Research for the Exploitation of the Sea (IFREMER)/French Association of Studies and Research of Nodules (AFERNOD), France
-- Deep Ocean Resources Development Co., Ltd. (DORD), Japan
-- Yuzhmorgeologiya, Russian Federation
-- China Ocean Minerals Research and Development Association (COMRA)
-- Interoceanmetal Joint Organization (IOM), consisting of Bulgaria, Cuba, Czech Republic, Poland, Russian Federation and Slovakia
-- Government of the Republic of Korea
Draft Mining Code
Meeting in closed session during the first week, the Legal and Technical Commission produced a third draft of the code that is to regulate prospecting and exploration by countries and companies in the international seabed area. After a brief discussion, the Council agreed to postpone further consideration of the text until 1998, by which time the Commission expects to have a final draft ready. The Council invited members of the Authority to submit written comments on the draft by 31 December.
The code will provide the legal foundation for activities by private and public entities registered with the Authority as they search for mineral resources that lie at the bottom of the ocean beyond the limits of national jurisdiction. The document will spell out, in legal and practical detail, procedures based on provisions in the Convention on the Law of the Sea and the
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1994 Implementation Agreement. Its formal title is "draft regulations on prospecting and exploration for polymetallic nodules in the area". Regulations for exploiting resources are to be dealt with at a later stage, since exploitation is not expected to occur for some time.
The provisional text prepared by the Commission -- circulated as an informal document at this stage -- defines the manner in which interested parties can become contractors by obtaining the Authority's approval of their plans of work for exploration in specified geographical areas. Applicants must be sponsored by States, and must possess certain financial and technical capabilities. They would have to supply information in support of their plans and pay a $250,000 fee. Plans of work would require approval by the Commission and consideration by the Council, subject to the provision in the 1994 Implementation Agreement that the plans of registered pioneer investors shall be considered and approved by the Council.
Once a plan of work is approved, the Authority would issue a 15-year contract. Among its provisions would be a requirement for a training programme for personnel of the Authority and developing countries. Every five years the contractor and the Authority would jointly review the work programme.
One part of the draft is devoted to measures to protect and preserve the marine environment. It would recognize the rights and interests of coastal States, and authorize the Council, on the Commission's recommendation, to issue emergency protection orders. The confidentiality of information submitted to the Authority by contractors would be assured.
Annexes to the regulations specify what information investors must supply to the Authority when notifying their intention to engage in prospecting and when applying for approval of a plan of work for exploration to obtain a contract. A third annex consists of a model contract for exploration, of the type the Authority would issue to an approved investor; it would incorporate schedules giving the geographical coordinates and an illustrative chart of the exploration area, as well as the work programme and training programme.
The last of the four annexes contains standard clauses for exploration contracts. These recognize the contractor's security of tenure and define the 15-year term of the contract. Other clauses mandate joint reviews of exploration activities and environmental monitoring, and provide for contingency plans and measures to be taken in the event of emergencies likely to cause serious harm to the marine environment. The obligations of contractors to conduct training programmes, keep books and records, and submit annual reports are spelled out, as is a requirement to submit information once the contract expires. Information supplied by the contractor to the Authority
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is to be kept confidential. Contractors would be obliged to accept inspection by the Authority, comply with safety, labour and health standards, and accept responsibility and liability for damage. The Authority's right to suspend or terminate the contract and impose penalties under certain circumstances is specified.
The Commission Chairman, Jean-Pierre Lenoble (France), in presenting the results of its work to the Council on 26 August, said the new draft reflected the extensive consideration given to three areas that it had identified last year: protection and preservation of the marine environment, annual reporting and the transfer of data by contractors to the Authority, and confidentiality of the information submitted. There was no substantive discussion of the draft in the Council.
Observers in Legal and Technical Commission
By virtue of a consensus accepted by the Council on 20 August, the last three days of the Commission's closed meetings on a draft mining code were attended by observers from up to 15 non-members of that body. This was the first time since the establishment of the 22-member expert body that observers were allowed to be present during its deliberations. The observers were accepted on a first-come, first-served basis but were not allowed to participate in the discussions.
The consensus decision was worked out in a meeting convened by the President of the Council with the Chairmen of the Commission and the "Group of 77" developing countries. It followed debates during the first two days of the resumed session on a proposal by the Group of 77, originally made in March, to admit observers from States that wished to follow more closely the work of the Commission.
Supporters of this proposal argued that Council members should be able to monitor the Commission's work in order to follow the thinking behind its recommendations. They maintained that this would lead to a speedier adoption of the code in the Council. Many developed States opposed the proposal, stating that the Commission's members, elected by the Council, were already widely representative of differing views and that, as experts, they should be free to voice those views in private, especially as they often dealt with confidential matters.
Finances of Authority
The authorized budget of $4,703,900 for 1998 includes funds for 36 posts, six more than the current establishment. Of the total, $3,328,100 is for operational and administrative functions including staff costs, while the
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remaining $1,375,800 is for servicing the two-part session of the Authority scheduled for next year.
Four of the six new posts will be in the Professional category: a marine science officer, librarian, meetings and documentation officer, and security coordinator. The Finance Committee singled out one more post for reinstatement, that of Budget/Treasury Assistant. In addition to staff costs, the budget covers the cost of organizing two workshops next year, to help develop guidelines for controlling the environmental impacts of seabed mining and to examine progress in seabed mining technology. Their location and timing have not yet been fixed.
The budget figure reflects a reduction from the original estimate of $5,375,200 submitted by Secretary-General Nandan (documents ISBA/3/A/5-ISBA/3/C/5) but represents a slight increase from the revised figure of $4,697,100 which he presented following consultations with delegates. The main change between these two amounts was a reduction of conference servicing costs from a tentative estimate of $1,786,100 to $1,375,800. The slight increase agreed in the Finance Committee reflected the reinstatement of the budget/treasury post.
The 1998 budget is the first to be financed by assessed contributions of members of the Authority. Since 1994, when the Authority was established, its budget has been funded by the United Nations, but as of next year it will not have access to these funds.
Budget contributions are to be payable in full within 30 days after the Secretary-General requests payment or on 1 January 1998, whichever is later. The President of the Council made a strong appeal to members to send their contributions in full and on time so that the Authority could function efficiently.
In its report (documents ISBA/3/A/6-ISBA/3/C/8), the Finance Committee suggested that a performance report be submitted along with future budgets, comparing actual to projected expenditures. It also decided to consider next March the conditions of service of the Secretary-General, and expressed hope that a solution would be found by next year to the problem of finding the best terms for the Authority's office accommodation.
In its resolution of 29 August adopting the budget (draft in document ISBA/3/A/L.5), approved on the recommendation of the Council (document ISBA/3/C/10), the Assembly also established a Working Capital Fund to tide the Authority over delays in the receipt of contributions. The amount was fixed at $392,000, with half payable in 1998 and the rest in 1999, according to the scale of assessments applied to the budget. Should this fund be inadequate, the Secretary-General is further authorized to borrow from other funds under
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his control, mainly the fees already paid by pioneer seabed investors when applying for approval of their work plans.
The scale of assessments adopted by the Assembly (document ISBA/3/A/L.6), also on 29 August, is based on the United Nations scale, with adjustments reflecting differences in membership. Assessments range from $470 (0.01 percent) at the bottom to a top rate of 25 per cent ($1,175,975) for the United States. A budgetary contribution of $75,000 was agreed to for the European Community, in addition to the separate assessments of its member States.
Other Matters
As there were no new developments concerning the headquarters of the Authority, notably the location of its permanent site in Jamaica, the Council decided on 28 August to put off until next March its study of a draft headquarters agreement. Jamaica told the Assembly on 27 August that a national commission had submitted a preliminary report, and all options were being exhaustively examined. Meanwhile, a permanent police post had been established on the rented premises in Kingston, in response to security concerns expressed by the Authority.
On the last day of the session, a working group circulated a new but still incomplete draft protocol on privileges and immunities, which will spell out the legal entitlements and obligations of the Authority, its officials and representatives of member States. The remaining matters of disagreement are to be addressed in March. Zdzislaw Galicki (Poland) was elected the new Chairman of the working group as it began meeting on 25 August.
The Council decided that any of the Authority's provisional members whose status was due to expire before the March 1998 session would have that status extended until the end of that session, when the Council would consider any request for extension. (The provisional members are listed at the end of this release, along with an explanation of this status.)
At its last meeting, the Assembly decided that the term of office of those Council members that were elected for two years in 1996 would expire on 31 March 1998, with their successors to be elected on the last day of the March session. The first Council of the Authority was elected by the Assembly in March 1996, when half of the 36 members were given two-year terms.
The Assembly, on 25 August, granted observer status to Greenpeace International, the third non-governmental organization to be so listed with the Authority.
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The Finance Committee did not have time to consider two pending matters, financial regulations and staff regulations, which it plans to take up in 1998.
Jose Luis Vallarta (Mexico), a Vice-President of the Assembly, acted as President throughout the August session in the absence of S. Amos Wako (Kenya), President for 1997.
Lennox Ballah (Trinidad and Tobago) completed his term as President of the Council in 1997. The chairmen of regional groups agreed on 28 August that the next President of the Council would be from the Group of Western European and Other States.
Members of Authority
The 135 members of the Authority are (C) Council member [36]; (P) provisional member [16]: *Algeria, *Angola, Antigua and Barbuda, *Argentina (C), *Australia (C), *Austria, *Bahamas, *Bahrain, Bangladesh (C, P), Barbados, Belarus (P), *Belgium (C, P), Belize, Bolivia, Bosnia and Herzegovina, Botswana, *Brazil (C), *Brunei Darussalam, Bulgaria, *Cameroon (C), *Canada (P), Cape Verde, *Chile (C, P), *China (C), Comoros, Cook Islands, *Costa Rica, *Cote d'Ivoire, Croatia, *Cuba (C), *Cyprus, *Czech Republic, Democratic Republic of the Congo, Djibouti, Dominica, *Egypt (C), Equatorial Guinea, *European Community (P), *Fiji, *Finland, *France (C), *Gabon (P), Gambia, Georgia, *Germany (C), *Ghana, *Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, *Guyana, Haiti, *Honduras, Iceland, *India (C), *Indonesia (C), Iraq, *Ireland, *Italy (C), *Jamaica (C), *Japan (C), Jordan, *Kenya (C), *Kuwait, Lao People's Democratic Republic (P), Lebanon, *Malaysia (C), Mali, *Malta, Marshall Islands, *Mauritania, Mauritius, *Mexico, *Micronesia (Federated States of), Monaco, Mongolia, *Mozambique, Myanmar.
Also *Namibia (C), Nauru, Nepal (P), *Netherlands, *New Zealand, *Nigeria (C), *Norway, *Oman (C), Pakistan, Palau, Panama, *Papua New Guinea, *Paraguay (C), *Philippines (C), *Poland (C, P), Qatar (P), *Republic of Korea (C), Romania, *Russian Federation (C), Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Sao Tome and Principe, *Saudi Arabia, *Senegal (C), Seychelles, Sierra Leone, Singapore, *Slovakia, Slovenia, Solomon Islands, Somalia, *South Africa (C, P), *Spain, Sri Lanka, *Sudan (C), *Sweden, *Switzerland (P), The former Yugoslav Republic of Macedonia, Togo, Tonga, *Trinidad and Tobago (C), *Tunisia (C), *Uganda, *Ukraine (C, P), *United Arab Emirates (P), *United Kingdom (C), United Republic of Tanzania, *United States (C, P), *Uruguay ,*Viet Nam, Yemen, *Yugoslavia, *Zambia (C) and *Zimbabwe.
* Attended the August session (76)
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All States parties to the Law of the Sea Convention are members of the Authority. In addition, provisional members are States (and the European Community) that have not adhered to the Convention but have notified in writing their intent to apply it and the Implementation Agreement provisionally. Provisional membership must be approved in each case by the Council, usually for two years but in some cases for one year.
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