SEABED COUNCIL RECEIVES MINING CODE DRAFT
Press Release
SEA/1578
SEABED COUNCIL RECEIVES MINING CODE DRAFT
19980324 (Received from the International Seabed Authority.)KINGSTON, 23 March -- A completed draft of the mining code that will regulate exploration for polymetallic nodules in the deep seabed was presented this morning to the Council of the International Seabed Authority, meeting in Kingston.
The draft, submitted by the Chairman of the Legal and Technical Commission, Jean-Pierre Lenoble (France), emerged from a series of closed meetings held by the 22-member Commission throughout last week. It took into account observations made by members of the Authority that had sent their comments to the secretariat since last August.
The Council immediately embarked on a general discussion of the text, hearing comments by Chile, Australia, Jamaica, Indonesia, United States, Cameroon, Russian Federation and Nigeria. This initial debate, to resume at the Council's next meeting tomorrow, 24 March, will be followed by informal discussion of individual provisions.
Mr. Lenoble pointed out that the mining code dealt only with prospecting and exploration in the international seabed area, the part of the deep ocean floor beyond the limits of national jurisdiction. Additional provisions would have to be established later to regulate the future exploitation of nodules and the prospecting, exploration and exploitation of the other mineral resources of the area.
He explained that it had been found useful to introduce the concept of "guidelines" -- to be issued with the Commission's approval -- which would complete the provisions of the code and guide the conduct of seabed contractors. In this regard, the Commission proposes to draft a list of environmentally appropriate technologies for exploration.
The Commission also approved a training programme offered by the Republic of Korea as part of its obligations as a pioneer investor. Four candidates from developing countries are to be selected by the Commission in
August, in time for the first training programme in 1999. The Commission also recommended that the Authority conduct two workshops, dealing with environmental data and appropriate technologies for the protection of the environment, to help elaborate guidelines for the conduct of activities in the area. Responding to this point, Satya N. Nandan, Secretary-General of the Authority, observed that one such workshop was already in this year's programme and the other could be included in the proposed 1999 budget.
At the August session, the Commission is to review the situation of the areas currently approved for exploration by the pioneer investors whose work plans were approved last August.
Council President Joachim Koch (Germany) reminded members that, under article 161 of the 1982 United Nations Convention on the Law of the Sea , the mining code must be approved by consensus. He said, "It is clear that not all the problems could be solved at this stage, and the Council has to address those questions which are in the view of delegations still open and should be ameliorated." He anticipated that the informal consideration of details of the text could not be completed in the few days remaining of the current session, but could be resumed at the second part of the session in August.
In the general comments this morning, Indonesia raised concerns about several regulations. It was concerned that certain terms left too much room for interpretation and needed clearer definition. It also questioned whether the Commission rather than the Council had the authority to approve guidelines. Indonesia also sought clarification on how the training programmes to be conducted by contractors would be financed. Cameroon and Nigeria endorsed these views.
Nigeria expressed concern about the sizeable portion of the seabed to which a single contractor would be accorded exclusive rights and the prolonged contract period of 15 years.
Regulation 31, regarding the issue of confidentiality of proprietary and commercially sensitive data, was scrutinized by several delegations, including Cameroon, Indonesia and Nigeria. They felt that the term "commercially sensitive data" needed to be more precisely defined and should not be left to the interpretation of the contractor alone.
The United States, while welcoming the progress and the positive developments on the draft mining code, observed that commercial deep seabed mining was still decades away. The discovery of vast nickel, copper and cobalt deposits at Voisey Bay in Labrador, Canada, which promised to be one of the lowest-cost sources of nickel in the world, underscored the fact that deep seabed mining would only augment, not replace, land mining. Meanwhile, States could address the dual need of protecting the environment while ensuring the commercial viability of mining ventures.
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The Russian Federation said important legal, economic and political guidelines must supplement the technical and scientific points outlined in the mining code. Because of its mandate and composition, the Commission, whose members were professionals, had not considered certain economic and political aspects. Profitability was an important consideration for potential investors. The Russian Federation, as a pioneer investor, was eager for the code to offer a workable balance between the interests of mining investors and those charged with regulating such activities.
Jamaica asked that the Legal and Technical Commission examine its rules of procedure at the earliest opportunity in August in order to facilitate a more interactive discussion on the mining code between that body and the Council.
Secretary-General Nandan gave an update on the status of negotiations on the proposed headquarters agreement between the Authority and the Government of Jamaica. He said that, on the advice of the Finance Committee, the secretariat had responded to that Government's letter of 10 March, seeking clarification on certain aspects of the offer to provide rent-free space to the Authority at its present location. He said he would report to the Council in August on the progress of these negotiations.
The representative of Jamaica, placing the offer in a historical context, noted that his country's first bid for the seat of the Authority had included an offer of land on which suitable accommodation could be established. He said it was in the interest of cost effectiveness and in light of the Authority's current financial situation that this improved offer of a complete office block had been made.
On other matters, the Council elected its four Vice-Presidents -- Argentina, Cameroon, Indonesia and the Russian Federation -- nominated by their regional groups. It also agreed to defer to August the draft agreement on the relationship between the Authority and the International Tribunal for the Law of the Sea, to await comments by the Registrar of the Tribunal. The staff and financial regulations being examined by the Finance Committee will also be addressed in August.
Changes in Mining Code Draft
The changes made by the Legal and Technical Commission since last year's draft mainly concern provisions on protection and preservation of the marine environment, and protection of the confidentiality of data supplied by contractors to the Authority.
Regarding environmental protection, a new clause would require applicants for a contract for exploration to submit "a preliminary assessment of the possible impact of the proposed exploration activities on the
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environment", as well as a description of proposed measures to prevent, reduce and control pollution and other environmental hazards. Another added paragraph would oblige contractors to "ensure the effective protection of the marine environment from serious harm" and to "take precautionary measures to anticipate, prevent or minimize any adverse impacts on the marine environment ... as far as reasonably possible using the best available technology".
With regard to confidentiality of data, expanded clauses on information required from prospectors and contractors would extend to 10 years or more the period during which the Authority must maintain the confidentiality of commercially sensitive and proprietary data. The Commission, with the consent of the prospector, could release such data when prospecting has ended, but data obtained from exploration would remain confidential if the contractor embarked on exploitation. Proprietary data or other confidential information supplied by contractors could not be disclosed by Commission members or Authority staff even after termination of their functions. The new text states that the Commission "shall recommend approval" of a prospective contractor's plan of work once it determined that the applicant had met the requirements set out in the regulations.
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