SEABED AUTHORITY TO CONSIDER REVISED TEXT OF DRAFT REGULATIONS ON POLYMETALLIC SULPHIDES, COBALT-RICH CRUSTS NEXT YEAR

Round-Up of Session

SEABED AUTHORITY TO CONSIDER REVISED TEXT OF DRAFT REGULATIONS

ON POLYMETALLIC SULPHIDES, COBALT-RICH CRUSTS NEXT YEAR

(Reissued as received.)

KINGSTON, Jamaica, 26 August (International Seabed Authority) -- Work on fashioning a  new mining code for newly-discovered polymetallic sulphides and cobalt-rich crusts in the deep oceans beyond national jurisdiction will continue at the next session of the International Seabed Authority which concluded its two-week eleventh session (15-26 August, Kingston ) a day earlier on Thursday, 25 August.

The Authority’s twelfth session is scheduled for 7 to 18 August 2006 at its headquarters in Kingston, Jamaica.

The Assembly of the Authority deferred action on the draft rules, regulations and procedures that will govern the prospecting or exploration  of the mineral resources because the Authority’s Council has yet to complete work on the text, which was originally prepared by the Legal and Technical Commission (LTC).  The Council completed its first reading of the text, which contains 43 draft regulations and four annexes, on Wednesday, 24 August.   Council President Hee Kwon Park ( Republic of Korea) said the completion of the first reading was no mean achievement, given the insufficient knowledge and information about the new metals.

The Secretariat is expected to prepare a revised text which would address some technical issues raised during the session, as well as correct a number of errors in translation noted by delegations.  Analyses of the more complex issues would be provided by the Secretariat and made available before the twelfth session.  

The task of the 148-member International Seabed Authority is to manage all mineral-related activities in the deep-seabed beyond national jurisdiction for the benefit of all mankind.  Parties to the 1982 United Nations Convention on the Law of the Sea are ipso facto members of the Authority.  There are 121 Parties to the 1994 Agreement relating to the implementation of the Part XI (seabed provisions) of the Convention.

Polymetallic Sulphides and Crusts

Polymetallic sulphides are hot springs with a high concentration of metallic particles, deriving mainly from underwater fractures.  While the fields of nodules are two-dimensional, sulphides are three-dimensional and are located at lesser depths.  The geographical distribution of sulphides is still largely unknown, but generally their concentration of metals is estimated to be higher than the concentration of metals within nodules.

Cobalt-crusts that cover some of the deep seabed areas can reach a thickness of a few centimetres.  These crusts contain the same kind of metals as nodules but with a much higher grade of cobalt.  Some of these crusts have been encountered on continental shelves and as a result their exploitation could take place outside the control of the Authority.

Draft Regulations

Part 1 of the draft regulations covers use of terms and scope of the regulations, while part II explains how prospecting shall be conducted, and the process by which contractors should notify the Secretary-General of their intention to do so.  It also covers submission of annual reports by contractors. Prospecting shall not be undertaken if substantial evidence indicates the risk of serious harm to the marine environment, according to the document.  The Secretary-General shall ensure the confidentiality of all data and information contained in reports submitted by contractors.

Part III, containing the general provisions, sets out the details of applications for approval of plans of work for exploration in the form of contracts.  The area for exploration shall not be more than 100 blocks.

According to the provisions in part IV of the text, the Council has to approve any plan of work for exploration which must be prepared in the form of a contract.  The exclusive rights of contractors to explore a specified area shall be guaranteed.  A plan of work for exploration shall be approved for 15 years.

There are provisions for the protection and preservation of the marine environment under Part V of the regulations. Contractors, sponsoring States and other interested States or entities shall cooperate with the Authority in the establishment and implementation of programmes for the monitoring and evaluating of impacts of deep sea mining on the marine environment.  Part VI has a confidentiality provision to protect proprietary data and information submitted by a contractor.

The need for more information on the new resources prompted delegations to agree on taking time to deliberate on the regulations.  Scientific data on polymetallic sulphides, gathered many years ago needed to be updated, and knowledge of ferromanganese crusts was far more limited.

Definitions of a block, cobalt crusts and polymetallic sulphides came into question and delegations requested clarification.  Some important metals found in crusts, such as manganese and copper, were omitted in the definition.

New wording in provisions governing environmental impact and reporting of incidence resulting from contractors’ activities was advocated.  Many delegations said the code’s provisions for the protection and preservation of the marine environment needed strengthening because research showed that the new minerals were more localized and, consequently, their exploration was more likely to cause damage.

An issue that attracted some debate was the provision in regulation 43 placing an obligation on prospectors or contractors to notify the Authority should they find resources other than polymetallic sulphides or cobalt crusts.  Discovery of other resources in the “Area” would raise issues for both the contractor and the Authority:  the contractor would need to know how to proceed, while the Authority would have to implement legal provisions to deal with the new find.

The Authority’s Legal and Technical Commission, which met a week prior to the session, presented its reports to the Council, featuring a range of issues including the annual report of contractors.  It elected Baïdy Diène as Chairman and Lindsay Murray Parson ( United Kingdom), as Vice-Chairman on the understanding that he will serve as Chairman at the twelfth session in 2006.  The Commission provided a set of explanatory notes relating to the draft regulations and an update on progress with the geological model of the Clarion-Clipperton Fracture “ Zone ”, and on the Kaplan project on the study of the biodiversity in the Zone.

Reports of Contractors

The Commission said that all the seven contractors had submitted reports which showed improvements in both form and content from previous years.  It recommended that future reports should also contain information and references to relevant documents and scientific publications that had arisen as a result of activities under the contract.

Application for Exploration

An application for approval of a plan of work for the exploration of polymetallic nodules in the international seabed Area submitted by the Federal Republic of Germany, represented by the German Federal Institute for Geosciences and Natural Resources, was approved by the Council on the recommendation of the Legal and Technical Commission.  The Commission said the applicant had complied with the provisions of the Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area and had also given the required undertakings and assurances specified in the Regulations.  The area under application was divided into two areas of equal estimated commercial value.

The German Government was given a specified sector for its prospecting and exploration activities, while the other was reserved for the Authority.  It noted that the year 2006 will mark the end of the first five-year programme of work of the contractors since the contracts were first issued.  It would therefore be an opportunity for the contractors to provide a comprehensive account of the work they had carried out, the results achieved and the expenditures incurred by them during the period.  The account should be additional to the 2005 annual report of the contractors, the Commission said.  Contractors could claim, as part of development costs, any actual and direct exploration expenditures incurred by them. Certified and audited statements provided by them should give a clear indication of such expenditures, it added.

The contractors are:  Deep Ocean Resources Development Ltd. (DORD), the Government of the Republic of Korea, China Ocean Mineral Resources Research and Development Association (COMRA), State Enterprise Yuzhmorgeologiya ( Russian Federation), Interoceanmetal Joint Organization (IOM) l’Institut français de recherche pour l’exploitation de la mer (IFREMER), and the Government of India.

Secretary-General’s Annual Report

The Assembly took note of the  Secretary-General’s annual report in which he laid out the Authority’s activities of the past year as well as projects and other programmes envisaged under way under the three-year (2005-2007) work programme, Introducing the report earlier in the Assembly on 16 August, the Secretary-General said in the Authority’s efforts to promote marine scientific research in the Area, the limited role of scientists from developing countries in those activities was becoming increasingly apparent.  He noted that applicability of some of the techniques used for research in the Area could be applied to address similar matters in the exclusive economic zones of many developing countries.

He referred to his proposal in the report for the establishment of a fund to promote marine scientific research and, inter alia, to provide opportunities for qualified scientists from institutions in developing countries to participate in research activities conducted by international scientists at sea or in laboratories of scientific institutions.  In the ensuing debate, a majority of delegations welcomed the proposals.  Many expressed support for the capacity-building initiative and said that they looked forward to details to be provided by the Secretary-General at the twelfth session.

Tribute to Kenneth Rattray

On Tuesday 23 August, the Assembly paid tribute to the memory of the late Kenneth Osborne Rattray, a prominent Jamaican jurist who was involved for many years in the negotiations leading to the conclusion of the 1982 United Nations Convention on the Law of the Sea.  The Secretary-General of the Authority, Satya N. Nandan, read out a statement that he had issued when he learnt of the passing away of Dr. Rattray on 4 January 2005.  He said Dr. Rattray had been associated with the Law of the Sea since 1968.  Between 1982 and 1994, he was an active participant in the Preparatory Commission for the establishment of the Authority and the International Tribunal for the Law of the Sea.  He said that Dr.Rattray had played a key role in persuading the Conference to choose Jamaica as the headquarters of the International Seabed Authority.  Statements were made by representatives of the various regional groups and some individual delegations.

Financial Issues

Deloitte & Touche, currently independent auditor for the Authority for 2003 and 2004, was again appointed the auditor for the 2005-2006 financial year, at the recommendation of the Finance Committee. A member of the Deloitte & Touche global network, the company was one of four Jamaican-based accounting firms to bid for the audit services for 2005.

The Assembly approved the assessed rate proposals on contributions to the Authority’s administrative budget and Capital Working Fund for three new members, Denmark, Latvia and Burkina Faso.  The figures are set out in a table contained in a report of the Finance Committee.(ISBA/11/A/8)-(ISBA/11/C/9).  Members of the Authority were urged to pay their assessed contributions to the budget on time and in full and to contribute to the Voluntary Trust Fund.

Voluntary Trust Fund

The Assembly adopted the recommendations of the Finance Committee that member Governments should continue to make requests for use of the voluntary trust fund for attendance at meetings of the Legal and Technical Commission and of the Finance Committee by their members from the developing countries.  The Legal and Technical Commission had proposed that consideration should be given to allowing members to apply directly for assistance from the fund.  Economy-class travel would remain the standard for assistance with fares.  The Assembly also agreed to the Finance Committee’s recommendation that to supplement the voluntary contributions, the Secretary-General be authorized to advance, to the extent necessary, up to $60,000 for its operation in 2006 from the interest from the fund for fees paid by the pioneer investors in deep-sea mining in the Area.  The Assembly noted with appreciation the contributions of $5,000 and $10,000 to the voluntary trust fund announced respectively by Nigeria and Trinidad and Tobago.

Elections

The President of the Assembly for the session, elected on August 15, was Olav Myklebust of Norway (biographical note in Press Release SB/11/3).  The Council President, also elected on August 15, was Hee Kwon Park of the Republic of Korea (biographical note in Press Release SB/11/4).

During this session, elections were held to fill vacancies on the Financial Committee and the Legal and Technical Commission, arising from the death or resignation of members.  The new members, who began serving immediately, are to complete the five-year terms, through to the end of 2006, to which their compatriots were originally elected.

On the Finance Committee, elected by the Assembly, Kyaw Moe Tun ( Myanmar), Antonin Paoizek ( Czech Republic), Oleg Safronov ( Russian Federation) and Alexander Stedtfeld ( Germany) replace (respectively) Aung Htoo, Ivo Dreiseitl, Boris Idrisov and Bernd Kreimer, who had resigned.

On the LTC, elected by the Council, Syamal Das ( India), Mahmoud Samy ( Egypt) and Adam M. Tugio ( Indonesia), replace M. Ravindran, Mohammed Gomaa, and Ferry Adamhar, who had resigned. Michael Wiedicke-Hombach( Germany) replaces the late Helmut Beiersdorf.

Request for Observer Status

The Assembly invited the International Union for the Conservation of Nature and Natural Resources to participate at its meetings after considering the organization’s request.  The Union has, for several decades, been expanding its marine conservation efforts, and recently the deep seas and high seas areas have become a particular concern.

Attendance at Sessions

Sixty-three of the 148 members attended the session raising again the vexing issue of attendance at meetings of the Assembly.  Lack of quorum has been a problem for the Authority for some time and action has been taken by the Secretariat towards increasing attendance.  The Secretary-General has written to members and has addressed the issue in statements at meetings of States parties to the Convention and at the United Nations General Assembly.

Members of Authority

The ISA membership consists of all parties to the Law of the Sea Convention.  The members are listed below, with an asterisk (*) marking those which participated in the session.

Albania, Algeria, Angola, Antigua and Barbuda, *Argentina, Armenia, *Australia, *Austria, *Bahamas, Bahrain, *Bangladesh, Barbados, *Belgium, Belize, Benin, Bolivia, Bosnia and Herzegovina, Botswana, *Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, *Cameroon, *Canada, Cape Verde, *Chile, *China, Comoros, Cook Islands, Costa Rica, Côte d’Ivoire, Croatia, *Cuba, Cyprus, *Czech Republic, Democratic Republic of the Congo, Denmark, Djibouti, Dominica, *Egypt, Equatorial Guinea, *European Community, Federated States of Micronesia, *Fiji, *Finland, *France, *Gabon, Gambia, Georgia, *Germany, *Ghana, *Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, *Honduras, Hungary, Iceland, *India, *Indonesia, *Iraq, *Ireland, *Italy, *Jamaica, *Japan, Jordan, *Kenya, Kiribati, *Kuwait, Lao People’s Democratic Republic, Latvia, Lebanon, Luxembourg, Madagascar, *Malaysia, Maldives, Mali, *Malta, Marshall Islands, Mauritania, Mauritius, *Mexico, Monaco, Mongolia, *Mozambique, *Myanmar.

Also, *Namibia, Nauru, Nepal, *Netherlands, New Zealand, Nicaragua, *Nigeria, *Norway, *Oman, *Pakistan, Palau, Panama, *Papua New Guinea, Paraguay, Philippines, *Poland, *Portugal, *Qatar, *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, Serbia and Montenegro, Seychelles, Sierra Leone, Singapore, *Slovakia, Slovenia, Solomon Islands, Somalia, *South Africa, *Spain, Sri Lanka, *Sudan, Suriname, Sweden, The former Yugoslav Republic of Macedonia, Togo, Tonga, *Trinidad and Tobago, *Tunisia, Tuvalu, *Uganda, Ukraine, *United Kingdom, *United Republic of Tanzania, Uruguay, Vanuatu, *Viet Nam, *Yemen, Zambia and Zimbabwe.

Six non-member States recorded their presence as observers:  Colombia, Dominican Republic, Ecuador, Peru, United States and Venezuela.  Observers may take part in all deliberations, without the right to vote.

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For information media • not an official record