INTERNATIONAL SEABED AUTHORITY TO CONTINUE ITS WORK ON MINING CODE AT KINGSTON, JAMAICA, 17 - 28 AUGUST
Press Release
SEA/1591
INTERNATIONAL SEABED AUTHORITY TO CONTINUE ITS WORK ON MINING CODE AT KINGSTON, JAMAICA, 17 - 28 AUGUST
19980814 Background Release (Received from the International Seabed Authority.)KINGSTON, 14 August -- Rules governing exploration for mineral resources in areas of the deep seas beyond the jurisdiction of individual countries will be the main item for discussion at the meeting of the International Seabed Authority in Kingston from 17 to 28 August.
The two-week meeting is the second part of the Authority's fourth annual session, held at its headquarters in Kingston. Both of the Authority's principal organs -- the Assembly, composed of all 137 member States and the European Community, and the 36-member Council -- will be meeting. The two subsidiary bodies of the Authority -- the Legal and Technical Commission and the Finance Committee will also meet during the session.
The International Seabed Authority, an autonomous international organization, was established by Part XI (seabed provisions) of the 1982 United Nations Convention on the Law of the Sea, which entered into force in 1994. The Authority is also governed by a 1994 Agreement relating to Implementation of Part XI, in effect since 1996. These multilateral treaties made the Authority the controlling body for regulating all resource-related activities in the international seabed area.
The Convention on the Law of the Sea states that the deep seabed area and its resources are "the common heritage of mankind", and "all rights in the resources of the Area are vested in mankind as a whole, on whose behalf the Authority shall act." During the first part of the 1998 session, from 16 to 27 March, the Council began examining the text of a draft mining code, the product of two years of work by the Authority's Legal and Technical Commission. The proposed regulations define how the Authority will oversee prospecting and exploration by private and public contractors interested in recovering "polymetallic nodules" -- mineral-rich lumps containing manganese, nickel, cobalt and copper -- from ocean bottoms beyond any nation's jurisdiction.
Seven "pioneer investors" are awaiting the issuance of licences (contracts) by the Authority regulating exploration of specific areas of the deep seabed in the Pacific and Indian Oceans. The approval of the pioneer investors' work plans last August was "among the most important milestones in the work of the Authority", Secretary-General Satya Nandan observed in his annual report to the Assembly, just issued (ISBA/4/A/11).
In August 1997, the Legal and Technical Commission reviewed the pioneer investors' requests for approval of their plans of work for exploration. The Commission ascertained that each of the seven plans met the requirements of the 1994 Agreement. The Council then requested the Authority's Secretary-General, Mr. Nandan to take the necessary steps to issue the plans of work in the form of contracts with the pioneer investors.
Detailed consideration of each exploration regulation and the standard contract provisions will continue during the Council's August meetings. After the Council has approved a set of rules and standard contract terms, it is expected that contracts will be issued to the pioneer investors.
Other matters to be considered at the August meetings include the Authority's budget for 1999, the scale of assessments for budget contributions, training programmes, efforts to develop guidelines for assessment of possible environmental impacts arising from seabed exploration, and plans for two workshops -- one concerning mineral resources other than polymetallic nodules, and the other on technologies for exploration and exploitation and for protection of the environment.
The Authority bodies also will discuss a number of administrative matters, including the offer by Jamaica of a building for permanent use by the Authority, and financial regulations which are being drafted by the Finance Committee.
During the two-week gathering, the Protocol on the Privileges and Immunities of the International Seabed Authority will be opened for signature by representatives of member States. A formal signature ceremony for the signing of the Protocol will be held at the headquarters of the International Seabed Authority from 26 to 27 August. It will then remain open for signature at United Nations Headquarters in New York until 16 August 2000.
The Protocol, adopted by consensus by the Authority's Assembly on 26 March 1998, deals with matters pertaining to the legal status of the Authority, its officials and representatives of its members. The Protocol is a treaty that requires adherence by at least 10 States before it enters into force.
Tadeusz Bachleda-Curus (Poland) is President of the Assembly for the 1998 session, and Joachim Koch (Germany) is Council President.
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Mining Code for Polymetallic Nodules
The draft regulations on prospecting and exploration for polymetallic nodules in the international seabed area were presented to the Council on 23 March by the Chairman of the 22-member Legal and Technical Commission, Jean-Pierre Lenoble (France).
The basic text, consisting of 33 regulations, sets out the framework for the exploration regime, while annexes contain a model contract and standard clauses. Its terms are based on provisions in the two basic instruments governing the Authority's work -- the United Nations Convention on the Law of the Sea and the Agreement relating to the Implementation of Part XI (seabed provisions) of the Convention.
The provisional text defines the manner in which interested parties can become seabed 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 specified kinds of 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 Implementation Agreement that the plans of registered pioneer investors shall be considered approved by the Council.
Once a plan of work was approved, the Authority would issue a 15-year contract granting recognized security of tenure. This would incorporate schedules giving the geographical coordinates and an illustrative chart of the exploration area, as well as a work programme that would be reviewed every five years jointly by the Authority and the contractor. Each contractor would be obligated to provide a training programme for personnel of the Authority and developing countries. The obligation of contractors to keep books and records and to submit annual reports is spelled out, as is a requirement to submit information once the contract expires. The confidentiality of information submitted to the Authority by contractors would be assured.
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 would have the right to suspend or terminate the contract and to impose penalties under certain circumstances.
The regulations specify that the freedom of marine scientific research, enshrined in the Law of the Sea Convention, is not affected. Regarding environmental protection, applicants for an exploration contract would be required to submit "a preliminary assessment of the possible impact of the proposed exploration activities on the environment", as well as a description of proposed measures to prevent, reduce and control pollution and other environmental hazards. Contractors would be obliged to "ensure the effective
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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, standard 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.
The draft code deals only with prospecting and exploration for polymetallic nodules. 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. During the second week of the session, the Legal and Technical Commission will consider confidential reports submitted by the registered pioneer investors in 1997. It will also consider implementation of a training programme submitted by the Republic of Korea, approved by the Commission in August 1997. On the basis of nominations received from members of the Authority, the Commission will select candidates for the training programme, which will start next March.
Headquarters of Authority
The Government of Jamaica has offered to the Authority the office block it currently occupies on Port Royal Street in downtown Kingston for permanent rent-free use as its headquarters. The Government pledged to undertake a certain amount of refurbishing, but said the Authority would be responsible for all subsequent maintenance costs.
The secretariat has sought clarification on some aspects of the offer, and commissioned a report on the condition of the building and estimated maintenance costs. The possibility of sharing space in the building with other international organizations was also being explored. (The United Nations Environment Programme (UNEP) occupies part of the Port Royal Street building.) Action on a draft agreement between the Government of Jamaica and the Authority regarding the headquarters had been postponed last year to allow the Authority to consider the Government's proposals on the headquarters site. The Secretary-General's annual report to the Assembly notes that the Secretariat continues to operate "with increasing difficulty" in the space first obtained in 1983 for the Kingston Office for the Law of the Sea, and additional space is urgently needed to accommodate the increased staff of the Secretariat.
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Budget for 1999
The estimated budgetary requirement for the Authority for 1999 is $5,604,100, which includes $1,375,800 for conference-servicing requirements. The budget for 1998 -- the first year of funding through direct contributions from member States rather than through the regular budget of the United Nations -- was $4,703,900.
A report by the Secretary-General on the budget request states that the increase is partially due to full costing of salaries and common costs of the 36 posts authorized in 1998; the budget for 1998 had been reduced to take into account delays in recruitment. The 1999 budget calls for an increase of 10.7 per cent over the 1998 budget for non-post requirements (cost of goods and services procured locally), reflecting increases resulting from inflation.
In his annual report, Secretary-General Nandan said the proposed budget continues to follow an "evolutionary approach". While it had been foreseen earlier that the Secretariat would require 44 posts by 1999, no additional posts are being requested for 1999. "In the light of experience since 1997, the Secretariat needs more time to consolidate its present resources and better evaluate its future staffing requirements". the Secretary-General said. As a result, the request for additional posts in 1999 is being postponed.
Among proposed activities in 1999 outlined in the budget document are: drafting of exploration contracts; developing the databases on marine mineral resources, environmental matters, and exploration technology; preparing reports on ecological risk associated with activities related to deep-sea polymetallic nodules, and on the status of deep seabed minerals other than polymetallic nodules; and convening workshops on such resources and on environmentally friendly technologies for prospecting and exploration.
The budget document outlines plans for upgrading the Authority's Internet website to provide downloadable documents in English, French and Spanish, and to provide authorized access to data and maps relating to the international seabed area.
Contributions to this year's budget had been received from 51 Authority members as at 16 June 1998. The total amount received by that date was $2,600,120, or 55 per cent of the total assessed contributions for the year.
Assessment of Resources
Following the recruitment of a marine geologist and a marine biologist, the Authority has commenced work on a detailed assessment of the resource potential of the deep seabed areas reserved for the Authority in the Clarion-Clipperton fracture zone, in the Pacific Ocean between the continental United States and Hawaii.
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A preliminary assessment of the location and abundance of polymetallic nodules in these areas was made by a consultant in 1997. The detailed study now under way divides the areas into different sectors, and for each sector will evaluate the resource potential, estimate the potential mining characteristics, and identify prime areas for future exploration.
Secretary-General Nandan noted in his annual report that one of the functions of the Authority is "to promote and encourage marine scientific research in order to foster the objective of better knowledge of the reserves of the Area".
Members of Authority
The 138 members of the Authority, including 11 provisional members (P), are: Algeria, Angola, Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, Bahrain, Bangladesh (P), Barbados, Belarus (P), Belgium (P), Belize, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Cameroon, Canada (P), Cape Verde, Chile, China, Comoros, Cook Islands, Costa Rica, Cote d'Ivoire, Croatia, Cuba, Cyprus, Czech Republic, Democratic Republic of the Congo, Djibouti, Dominica, Egypt, Equatorial Guinea, European Community, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Iceland, India, Indonesia, Iraq, Ireland, Italy, Jamaica, Japan, Jordan, Kenya, Kuwait, Lao People's Democratic Republic, Lebanon, Malaysia, Mali, Malta, Marshall Islands, Mauritania, Mauritius, Mexico, Micronesia (Federated States of), Monaco, Mongolia, Mozambique, Myanmar.
Also Namibia, Nauru, Nepal (P), Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Philippines, Poland (P), Portugal, Qatar (P), Republic of Korea, Romania, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, Somalia, South Africa, Spain, Sri Lanka, Sudan, Suriname, Sweden, Switzerland (P), The former Yugoslav Republic of Macedonia, Togo, Tonga, Trinidad and Tobago, Tunisia, Uganda, Ukraine (P), United Arab Emirates (P), United Kingdom, United Republic of Tanzania, United States (P), Uruguay, Viet Nam, Yemen, Yugoslavia, Zambia and Zimbabwe.
Suriname became the 138th member in July. Three former provisional members -- European Community, Gabon and the Lao People's Democratic Republic -- are now regular members, following their ratification of the Law of the Sea Convention this year.
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