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Minerals Report - International Seabed Authority

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The Secretary-General said that the only mineral resource found in the<br />

Area for which rules and regulations have been formulated is polymetallic<br />

nodules. He noted that the system or regime for this resource is extensively<br />

prescribed in the body of the Convention (in particular Part XI) and in its<br />

Annex III. Since the adoption of the Convention, the Secretary-General<br />

pointed out that modifications have been made to a number of the<br />

Convention’s provisions. He said that these modifications are contained in<br />

what is known as the 1994 Agreement Relating to the Implementation of Part<br />

XI of the United Nations Convention on the Law of the Sea. The Secretary-<br />

General then described the system for prospecting and exploring for<br />

polymetallic nodules. He said that in this system, a prospector submits an<br />

application for an exploration contract to the <strong>Authority</strong>. As part of the<br />

application, the applicant is required to submit data and information on a<br />

total area containing two areas of equal estimated commercial value.<br />

Following a review of the application, one area is given to the applicant, and<br />

the other is reserved for the conduct of activities by the <strong>Authority</strong> through the<br />

Enterprise, the operating arm of the <strong>International</strong> <strong>Seabed</strong> <strong>Authority</strong>, or in<br />

association with developing States.<br />

Mr. Nandan said that this system was developed as a compromise. He<br />

explained that during the Third United Nations Conference on the Law of the<br />

Sea, there was a debate as to whether the <strong>Authority</strong> should be the sole mining<br />

operator in the international seabed area through its operating arm, the<br />

Enterprise, or whether the <strong>Authority</strong> should be no more than a licensing body<br />

to issue licenses, legitimise claims in the international area and in due course<br />

perhaps collect some royalties. Given the conflict between these two<br />

approaches, Mr. Nandan said that in 1976, the then Secretary of State of the<br />

United States, Mr Henry Kissinger came to New York and met with a number<br />

of delegates involved in the negotiations. At the meeting, Mr. Nandan said<br />

that Mr. Kissinger proposed a solution that contained a bit of both elements.<br />

He said that Mr. Kissinger suggested that a prospective explorer should be<br />

required to submit two sites of equal commercial value to the <strong>Authority</strong>. One<br />

site would be given to the operator and the other would be reserved for<br />

exploration and possible exploitation by the <strong>Authority</strong>.<br />

Mr. Nandan pointed out that the circumstances at the time were such<br />

that a number of interested entities had gone ahead and located and identified<br />

INTERNATIONAL SEABED AUTHORITY 468

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