Minerals Report - International Seabed Authority

Mr. Nandan pointed out that the next issue was technology, because it
was felt that even with money, without technology, participation in the
parallel system would not be feasible. The answer to this issue was an
agreement to provide technology on a fair and reasonable commercial basis.
Mr Nandan said that these considerations were the basis for the development
of the parallel system contained in Part XI that was subsequently modified by
the Agreement relating to the implementation of this part of the United
Nations Convention on the Law of the Sea.
Mr. Nandan pointed out the modifications introduced by the
Agreement included eliminating the contribution by States Parties to the first
operation by the Enterprise. This was achieved by a provision requiring that
the first operation of the Enterprise would be by way of a joint-venture
operation after which the Council would determine how the Enterprise would
proceed with subsequent mining operations. Based on the fact that the
Authority has a number of reserved sites including some very good sites, Mr.
Nandan made the observation that it was felt that the Enterprise could use
these sites as its equity participation in future joint-venture operations.
With regard to the transfer of technology, Mr. Nandan said that based
on the negotiation of these provisions as they relate to deep seabed mining
during the Conference, ideologically some States took the provisions as a
requirement for compulsory transfer of technology. Mr Nandan said that the
transfer of technology provisions in the Convention required contractors to
agree to a number of undertakings to make technology available to the
Enterprise under different circumstances if the Enterprise could not otherwise
obtain technology on the open market. These included, inter alia, to make
available to the Enterprise all of the technology used by the contractor in the
Area on fair and reasonable commercial terms and conditions, and to acquire
from the owners of any technology used by the contractor by means of an
enforceable contract the legal right to transfer such technology to the
Enterprise. These and related provisions, Mr. Nandan said have been
modified in the Part XI agreement so that the States whose nationals have the
technology are called upon to assist the Enterprise to obtain the technology at
a fair and reasonable commercial price or through joint-venture
arrangements.
INTERNATIONAL SEABED AUTHORITY 470