Minerals Report - International Seabed Authority

dimensional seafloor massive sulphides and cobalt-rich ferromanganese
crusts deposits. This participant pointed out that the biggest difference is in
the cost to evaluate the latter two types of deposits that was described as
tremendously expensive. Comparing the size of nodule deposits to seafloor
massive sulphides and cobalt-rich ferromanganese crusts, this participant said
that in addition to the fact that the newer deposits are much smaller than
nodule deposits, (almost like the difference between coal which is stratified
and a small gold vein deposit), there were many other dissimilarities between
them.
With regard to the requirement to submit two sites of equal estimated
commercial value, another participant expressed his disbelief that investors
would commit large sums of money to explore the worlds oceans with the
prospect that when they have done that the best targets might just disappear
before they have actually had the opportunity to recover any money on what
are traditionally looked at as sunk costs. This participant said that although
the concept of equal values is very noble, the value of a deposit is only
determined when it has been completely mined. This participant noted that
the amount of sampling and evaluation work that can be conducted on a
deposit is limited. He also noted that while polymetallic nodule deposits
could be considered as monolayered, he was of the opinion that all three types
of deposits must contain high variations in grade. In this regard, this
participant referred to the information that had been presented at the
workshop on sampling these deposits. He pointed out that based on spot
sampling, a few hundred samples that have been taken, assertions are being
made about the average grades of deposits as if this is going to be what the
mining house gets back. He noted that to be able to make an equal value
decision, hundreds of millions of dollars would have to be spent because of
the vast depths of water, the need to be able to sample the deposits on a
consistent grid basis, and to apply geo-statistics to the results. This
participant said that the first company that would have to do this kind of
work would be the Nautilus Mining Company. The participant reiterated the
point of view that industry would not be attracted to a proposition that
requires hundreds of millions of dollars to be placed upfront without any
protection.
INTERNATIONAL SEABED AUTHORITY 476