Minerals Report - International Seabed Authority
Minerals Report - International Seabed Authority Minerals Report - International Seabed Authority
of its continental shelf through bilateral agreements with its neighbours. The Government of Indonesia controls all scientific research, exploration, construction of installations and structures on the continental shelf. Mining of oil and natural gas in Indonesia including in all islands, in the seabed of archipelagic waters, the territorial sea, and the continental shelf can be done only through a state company. He gave a brief overview of Pertamina State Oil Company and its activities. Pertamina, he informed participants, has formulated model terms of production sharing contracts/agreements that have been widely used. The contracts clearly state that all mineral oil and gas existing within the statutory mining territory of Indonesia are national riches controlled by the state. Pertamina has an exclusive authority to mine, while the contractor could assist Pertamina in accelerating the exploration and development of other resources within the contract area. The term of the contract is for 30 years and at the end of the first six years, the contractor shall have the option to request a four-year extension. The contract shall terminate if after the first six years or the extension thereto, no petroleum in commercial quantities is discovered. In the event of a petroleum discovery, Dr. Djalal told participants that development is in that portion of the contract area. On or before the end of the initial three years, the contractor is required to relinquish 25% of its initial contract area. Similarly, on or before six years, a further 25% of the contract area has to be relinquished. On or before the tenth year, the contractor is required to relinquish further areas so that the remaining area is not be more than 20% of the original contract area, or any other specific area subject to negotiation, whichever is less. The contractor is required to maintain a reasonable exploration effort and if during two consecutive years, does not submit exploration programmes, Pertamina may require the contractor either to submit an exploration programme, or relinquish such part of the contract area. Dr. Djalal also explained certain other procedural requirements. He pointed out that the mining legislation in Indonesia treats oil and gas somewhat differently from hard minerals. While the exploration and exploitation of oil and gas are largely based on the production sharing system, in respect of minerals, it is based on a licensing system in which the licensed mining companies are obliged to pay mining fees, taxes, and royalties to the INTERNATIONAL SEABED AUTHORITY 64
government. The difference is basically because it is relatively easier to delineate the oil and gas reserves in comparison with delineation of hard mineral reserves. The presentation did not further elaborate on the subject, but only mentioned that in respect of offshore mining, Indonesia had some offshore tin mines that were very close to the shorelines, and are generally regarded as an extension of mining on land. 22 The role of the South Pacific Applied Geosciences Commission (SOPAC) in promoting exploration for marine mineral resources in the Pacific region Mr. Alfred Simpson, Director of the South Pacific Applied Geosciences Commission (SOPAC), presented a paper prepared together with Cristelle Pratt, K. Kojima and R. Koshy on “The role of SOPAC in promoting exploration of marine mineral resources in the Pacific Region”. He gave a brief history of SOPAC, its regional setting and the various activities and cooperative cruises relating to marine scientific research that SOPAC had been involved with. Mr. Simpson informed participants that SOPAC had established a comprehensive database on marine mineral resources and provides advice and support for marine mineral research and development to its members. He pointed out that marine scientific research campaigns by SOPAC have identified key resources of polymetallic massive sulphides, manganese nodules and cobalt-rich manganese crusts within the 200-mile Exclusive Economic Zones of some of the Pacific island community countries. In respect of manganese nodules, he stated that the work by the SOPAC/Japan programme has shown that the cobalt metal content and resource density of the manganese nodule resources in the exclusive economic zone of the Cook Islands are significantly more than in the Clarion-Clipperton Zone. The SOPAC/Japan programme has also identified manganese nodule deposits in the exclusive economic zones of Kiribati and Tuvalu. In respect of cobalt-rich manganese crusts, Mr. Simpson said that discoveries of such deposits, up to 15 cm thick on terraces and submerged platforms zones had been made in the exclusive economic zones of Kiribati and Tuvalu, the Republic of the Marshall Islands, Samoa, Guam and the Federated States of Micronesia. The chemical composition of the crusts, he INTERNATIONAL SEABED AUTHORITY 65
- Page 22 and 23: that was established to help protec
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government. The difference is basically because it is relatively easier to<br />
delineate the oil and gas reserves in comparison with delineation of hard<br />
mineral reserves. The presentation did not further elaborate on the subject,<br />
but only mentioned that in respect of offshore mining, Indonesia had some<br />
offshore tin mines that were very close to the shorelines, and are generally<br />
regarded as an extension of mining on land.<br />
22 The role of the South Pacific Applied Geosciences Commission<br />
(SOPAC) in promoting exploration for marine mineral resources in<br />
the Pacific region<br />
Mr. Alfred Simpson, Director of the South Pacific Applied Geosciences<br />
Commission (SOPAC), presented a paper prepared together with Cristelle<br />
Pratt, K. Kojima and R. Koshy on “The role of SOPAC in promoting<br />
exploration of marine mineral resources in the Pacific Region”. He gave a<br />
brief history of SOPAC, its regional setting and the various activities and<br />
cooperative cruises relating to marine scientific research that SOPAC had been<br />
involved with. Mr. Simpson informed participants that SOPAC had<br />
established a comprehensive database on marine mineral resources and<br />
provides advice and support for marine mineral research and development to<br />
its members. He pointed out that marine scientific research campaigns by<br />
SOPAC have identified key resources of polymetallic massive sulphides,<br />
manganese nodules and cobalt-rich manganese crusts within the 200-mile<br />
Exclusive Economic Zones of some of the Pacific island community countries.<br />
In respect of manganese nodules, he stated that the work by the<br />
SOPAC/Japan programme has shown that the cobalt metal content and<br />
resource density of the manganese nodule resources in the exclusive economic<br />
zone of the Cook Islands are significantly more than in the Clarion-Clipperton<br />
Zone. The SOPAC/Japan programme has also identified manganese nodule<br />
deposits in the exclusive economic zones of Kiribati and Tuvalu.<br />
In respect of cobalt-rich manganese crusts, Mr. Simpson said that<br />
discoveries of such deposits, up to 15 cm thick on terraces and submerged<br />
platforms zones had been made in the exclusive economic zones of Kiribati<br />
and Tuvalu, the Republic of the Marshall Islands, Samoa, Guam and the<br />
Federated States of Micronesia. The chemical composition of the crusts, he<br />
INTERNATIONAL SEABED AUTHORITY 65