Minerals Report - International Seabed Authority

2.2. Major Features of the Draft Offshore Mining Policy
Under Papua New Guinea’s Constitution, no international treaty that
PNG is a signatory to is binding on it until such treaty is given domestic legal
force. In this instance either the Mining Act 1992 may be amended or a new
legislation for offshore mineral exploration and mining may be promulgated.
The final form of legislation will be dependent on the outcome of the Offshore
Minerals Policy. Currently, it is on hold pending engagement of a consultant
under the World Bank Institutional Strengthening Project to review and
finalise the policy including its enabling legislation.
For the purposes of this paper the major features of the draft policy are
enumerated for ease of reference.
2.2.1. Diverse Offshore Resources
The draft policy is open to accommodate different offshore resources
(excluding fish and other marine resources) that may be found in the offshore.
In general terms the developed and potential mineral deposits are diverse and
include sand, gravel, diamonds, black sands, oil, naturally occurring
hydrocarbons, manganese nodules, manganese crusts and PMS. They are
poorly explored and have a wide range of issues impacting on their
development including inadequate governing policy and legislation, need for
new and improved technology for exploitation, lack of assured economic
potential, numerous environmental impacts and other as yet unquantified
stakeholder interests.
Of these offshore mineral resources deep ocean manganese nodules
are by far the most studied by researchers and the private sector while the
PMS that occur within several nations’ exclusive economic zones are rapidly
assuming more importance in terms of research and private sector interest.
2.2.2. Licences and Licensing
The exploration cost in the offshore may be high if costs for scientific
cruises are any indication. One scientific cruise on average costs anything in
INTERNATIONAL SEABED AUTHORITY 360