Minerals Report - International Seabed Authority

nodules exploration. He pointed out that in the case of nodules, the interested
entities started from scratch, and without any laws to protect their
investments. He said that the entities that were interested in developing
nodule resources took the financial risk to prospect the Area for polymetallic
nodule deposits. Referring to the minimum expenditure requirement for
registration as a pioneer investor of US$30 million (1982) as provided for in
Resolution II of the Convention, he also said that the concerned entities had
already gathered the information required to prove that the two sites were of
equal commercial value. The participant however made the observation that
at present it appeared unlikely that any potential applicant would risk tens of
millions of dollars without the assurance that it would be authorized to
continue to develop a mine. As a result, this participant suggested that the
Authority should invent a system that protects this initial investment stage of
the development of these resources by issuing “an exclusive prospecting
right”, so that the applicant could start its operation in a broad area. Later,
the area could be split in two.
Another participant made the observation that the situation described
for the polymetallic nodule regime was different. This participant said that
the system for polymetallic nodules worked because prospecting and
prospected areas were kept secret. He emphasized this point by referring to
the considerable amount of overlaps in prospected areas in the Clarion-
Clipperton zone. He further added that it required seven years of
negotiations by those concerned to yield a complicated result. This participant
expressed support for providing prospectors for seafloor massive sulphides
and cobalt-rich ferromanganese crusts with an assurance and guarantee that
protect their investments, and a priority right to mineable areas within which
prospecting is to occur. In response to a question whether a pioneer status
was being requested, this participant responded by saying that what is sought
is an opportunity for prospectors to start prospecting and to acquire sufficient
data in order to fulfil the parallel system. This participant stated that the
period during which the prospected area is protected would be to enable the
operator to acquire the data necessary to identify two areas of equal
commercial value.
Another participant noted that there is a big difference between twodimensional
deposits like polymetallic nodule deposits and the three-
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