FRONT MATTER.PMD - International Seabed Authority

Annex III: art. 13
151
(e) to enable the Enterprise to engage in seabed mining effectively at the
same time as the entities referred to in article 153, paragraph 2(b); and
(f) to ensure that, as a result of the financial incentives provided to contractors
under paragraph 14, under the terms of contracts reviewed in
accordance with article 19 of this Annex or under the provisions of
article 11 of this Annex with respect to joint ventures, contractors are
not subsidized so as to be given an artificial competitive advantage with
respect to land-based miners.
2. A fee shall be levied for the administrative cost of processing an application
for approval of a plan of work in the form of a contract and shall be fixed at
an amount of $US500,000 per application. 1 The amount of the fee shall be reviewed
from time to time by the Council in order to ensure that it covers the
administrative cost incurred. If such administrative cost incurred by the Authority
in processing an application is less than the fixed amount, the Authority shall
refund the difference to the applicant.
[3-10. Do not apply. See Agreement, annex, Section 8, paragraph 2] h
11. All costs, expenditures, proceeds and revenues, and all prices and values
referred to in this article, shall be determined in accordance with generally
recognized accounting principles and the financial rules, regulations and procedures
of the Authority.
12. Payments to the Authority under paragraphs 5 and 6 2 shall be made in
freely usable currencies or currencies which are freely available and effectively
usable on the major foreign exchange markets or, at the contractor’s option, in the
equivalents of processed metals at market value. The market value shall be determined
in accordance with paragraph 5(b). 3 The freely usable currencies and
1
The Agreement, annex, Section 8, paragraph 3 provides that with regard to the implementation
of Annex III, article 13, paragraph 2, of the Convention, the fee for processing applications for
approval of a plan of work limited to one phase, either the exploration phase or the exploitation
phase, shall be US$ 250,000. In accordance with article 2 of the Agreement, the provisions of
the Agreement and Part XI shall be interpreted and applied together as a single instrument. In
the event of any inconsistency between the Agreement and Part XI, the provisions of the Agreement
shall prevail.
2
Paragraphs 5 and 6 of article 13 do not apply. However, provisions relating to Financial Terms
of Contracts occur in the Agreement, annex, Section 8. In accordance with article 2 of the
Agreement, the provisions of the Agreement and Part XI shall be interpreted and applied together
as a single instrument. In the event of any inconsistency between the Agreement and
Part XI, the provisions of the Agreement shall prevail.
3
Paragraph 5(b) of article 13 does not apply. However, provisions relating to Financial Terms of
Contracts occur in the Agreement, annex, Section 8. In accordance with article 2 of the Agreement,
the provisions of the Agreement and Part XI shall be interpreted and applied together as
a single instrument. In the event of any inconsistency between the Agreement and Part XI, the
provisions of the Agreement shall prevail.
h
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