Legal Issues for Exploration and Exploitations of Indian Ocean Resources: Considerations
Dr. Bimal N. Patel
Director (Vice-Chancellor) of the Gujarat National Law University
Abstract:
Developing Nations surrounding the Indian Ocean will continue to have significant increase in demand for metal (copper, cobalt, nickel and manganese), however, they may be unable to afford high price due to profitability margin sought by other supplier nations and companies to procure metal at higher prices. It is also to be noted that the Developing Nations surrounding the Indian Ocean companies have limited mining experience abroad, however, the recent explorations suggest that they can be encouraged to engage in high profit mining sectors in the world with the sovereign intervention and help. Developing Nations surrounding the Indian Ocean are experiencing a decline in the tonnage and grade of land-based nickel, copper and cobalt sulphide deposits which have significant adverse impact on its ambition to rapid industrialisation. Developing Nations surrounding the Indian Ocean are seriously considering initiating technological advancements for deep seabed mining and processing. Developing Nations surrounding the Indian Ocean in Asia do not have as yet any successful example seabed mining licences; however, recent licensing by Papua New Guinea to Nautilus Mining Company of Canada sets a good example them to take a public-private partnership approach to the seabed mining. Papua New Guinea gave deep seabed mining licence to Nautilus Company of Canada for territorial Bismarck Sea operations – prototype is available now. Based on the assessment of the licence and terms of contract between Papua New Guinea and Nautilus, few Developing Nations surrounding the Indian Ocean can develop their own model. This model shall consider various options: an exclusive licence to a foreign company or local company or a JV between sovereign and foreign company or a JV between local sovereign and local company. ISA has approved Plans of Work for several companies, including Nauru, Tonga (PN) and China, Russia (PS). 17 exploration contracts have been already approved by the ISA. First PN exploration will expire in 2016 – plan of work or action is imperative.