Minerals Report - International Seabed Authority

were encouraging. In the course of raising the finances for exploring these
deposits, he explained that one of the important expectations of mining
companies and investors has been that the grade of the ore should be of high
order. Mining high grades means processing less rock in the case of massive
sulphides. He observed that the fundamental difference between polymetallic
nodules and ferromanganese crusts, and massive sulphides lies in their
respective grades. He pointed out that while the earlier discoveries of
polymetallic sulphides deposits during the TAG research only revealed low
grades, the new class of deposits in the PACMANUS Basin have high zinc,
copper and gold contents. He pointed out that a 1.1 tonne chunk of
mineralization recovered by Nautilus assayed 51 percent zinc.
With respect to the technology involved, he stated that it is actually a
simple extension of what is already being utilized by the oil and gas industry.
In his view, the possibility of developing a massive sulphide mining system is
attractive to the mining industry and there were several advantages of mining
massive sulphides in comparison to terrestrial mining by virtue of the lower
discovery costs, shorter development lead time, no land owner disturbances,
cheaper plant and transport systems and similar factors.
9. Papua New Guinea’s Mining Act for seafloor massive sulphides
deposits
Dr. James Wanjik reported on data and reporting requirements for
seafloor massive sulphides under Papua New Guinea’s Mining Act. He
stated that prospecting and exploration for massive sulphides is a new
activity unlike marine scientific research. The 1992 Mining Act of Papua New
Guinea was mainly intended for activities onshore. Following the ratification
of the United Nations Convention on the Law of the Sea, an offshore minerals
policy has been drafted but not yet finalized. He pointed out that depending
on the outcome of the offshore minerals policy, the Mining Act of 1992 may be
amended or new legislation for offshore minerals exploration and mining
may be enacted.
Under the existing Mining Act, Mr. Wanjik explained that, no mineral
exploration or mining can take place in the country without the expressed
authority of the State. Licences issued under the Act cover exploration,
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