AS of May this year, the International Seabed Authority (ISA) had issued 16 contracts for exploration of the deep seabed, covering some 900,000 km2 in the Atlantic, Indian and Pacific oceans.

Twelve of the contracts are for polymetallic nodules, two for polymetallic sulphides, and the other two for cobalt-rich ferromanganese crusts.

The most recent contractors are Japan Oil, Gas and Metals National Corporation, whose contract took effect on January 27 this year, and China Ocean Mineral Resources Research and Development Association, whose documents came into force on April 29. Both companies are authorised to explore for cobalt-rich ferromanganese crusts.

According to the secretary- general’s report to the ISA Council, “three plans of work for exploration approved by the Council at the 18th session have yet to be concluded in the form of a contract with the Authority” and “seven applications for approval of plans of work for exploration are under consideration by the Legal and Technical Commission and the Council”.

They will be considered during the 20th session and are anticipated to be signed in the second half of 2014, bringing the total number of exploration contracts to 19.

Exploration contracts generally last for 15 years, after which time contractors are expected to apply for exploitation or mining licences.

The earliest exploration contracts were awarded in 2001, which means mining could begin as early as 2016.

Draft regulations for exploitation of polymetallic nodules are still being worked on, as per the SG’s report. Among the issues being considered are “corporate social responsibility, the engagement of stakeholders, a mining inspectorate, liability and indemnification for claims, a fiscal system, closure plans, and a reporting mechanism”.

For administering and supervising exploration contracts, contractors pay the ISA an annual overhead charge of US$47,000 when they submit their activity reports, which is by no later than March 31 each year.

— Kimone Thompson