Presentation - International Seabed Authority

WORKSHOP ON ENVIRONMENTAL MANAGEMENT
OF DEEP SEABED MINERALS

Sponsorship
The Republic of Nauru has sponsored Nauru Ocean Resources
Inc. (“NORI”) to explore for minerals and carry out
environmental studies in the International Seabed Area.
NORI will be exploring in the North East Pacific Ocean for
seafloor polymetallic nodules, which contain potentially
economic grades of nickel, copper and manganese. These
metals are the basic ingredients essential for global economic
and social growth, particularly in developing countries where
there is an increasing demand for more affordable and
accessible supplies of these raw materials to advance living
standards and alleviate poverty.
Nickel, copper and manganese do not occur economically in
Nauru’s jurisdiction, and this is an opportunity for Nauru to
participate in the development of these key resources.

Sponsorship
NORI and Nauru have pioneered a unique arrangement
through which benefits can be brought to a developing State
including employment, training, capacity building, and foreign
investment, without causing the negative impacts generally
associated with the extractive industry such as community
dislocation and degradation of the national environment.
This project will make a significant difference for Nauruan
people and represents a valuable opportunity for the State to
advance its social and economic development to ensure
Nauru’s long term sustainability.
Importantly, proceeds from NORI’s DSM will be distributed in
Nauru to promote education, training, health and
environmental rehabilitation.

The Republic of Nauru
Nauru relies on foreign aid and support, as well as imported
food resulting in significant health issues in the State.
Nauru’s own land resources have been significantly depleted
due to overharvesting of its phosphate deposit by Britain,
Australia and New Zealand, and there is little arable land
remaining. Because phosphate mining has left 80% of Nauru
uninhabitable, it is essential that Nauru rehabilitates its
environment to make it suitable for habitation and agriculture;
the cost of rehabilitation will be in excess of US$200 million.
Secondary phosphate mining in Nauru will only last for a few
more years; therefore, this project will provide a significant
potential income source that will assist in that transition
phase.
This project therefore allows the State to benefit from resource
development without Nauru being further depleted of what
little natural resources it has left, and will provide the State
with an important income source to fund environmental
rehabilitation on the island.

Sponsorship
Essentially, this project represents an opportunity for the
mining industry to give back to Nauru.
Nauru does not have any commercially prospective non-living
seafloor minerals in its EEZ, thus it must look to the
international seabed area.
Nauru will particularly benefit from training and capacity
building from this new industry in Nauru given that this area
has been identified as a national incapacity in Nauru’s National
Sustainable Development Strategy 2005-2025. The training
provided by NORI in partnership with the Nauru Education and
Training Foundation will particularly benefit Nauru’s young
people who will over time be employed in the project or serve
as advisors to the State.
This project provides Indigenous Naruans with an opportunity
to rebuild their society, regain their culture, and regain their
independence.

International Seabed Authority
NORI will be operating under the ISA’s rules and regulations,
which represent WORLD’s BEST PRACTICE. These rules and
regulations have been diligently prepared over a period of four
decades and show an over-riding concern for the safeguarding
of the environment, with significant input and direction from
environmental experts from around the world. UNCLOS has
been agreed upon and adopted by over 160 States.
The ISA’s Exploration Regulations are one of the most
environmentally stringent mineral exploration regulations in
the world.

Sponsorship Responsibility
Since sponsoring NORI in 2008, Nauru has shown an
overriding caution and concern for ensuring that its
sponsorship responsibilities and obligations are fulfilled,
including requesting an advisory opinion from the
International Tribunal for the Law of the Sea.
The State has welcomed the advisory opinion delivered on 1
February 2011, and has commenced the process of
implementing a comprehensive legal framework to regulate
activities in the international seabed area.

Legislation
The objects of Nauru’s legislation will be to:
(a) establish a regime for the efficient management and
regulation of Seabed Mineral Activities being carried out
by ISA Contractors;
(b) establish a system for granting Licenses for ISA
Contractors to engage in Seabed Mineral Activities;
(c) ensure that ISA Contractors carrying out Seabed Mineral
Activities comply with their obligations under UNCLOS
and the ISA’s Rules and Regulations, and to make
enforceable those obligations;
(d) implement the State’s Sponsorship Responsibilities
under UNCLOS ;
(e) assist the State diversify its economy and encourage
foreign investment to promote current and future social
and economic development in the State;
(f) provide effective measures for the protection of the
marine environment and for safety of life and property at
sea in the International Seabed Area in accordance with
UNCLOS and the ISA’s Rules and Regulations;

Legislation cont.
(g) ensure that recourse is available for prompt and adequate
compensation or other relief in respect of damages caused by
wrongful acts committed by ISA Contractors in the course of
carrying out Seabed Mineral Activities, including damage
caused by unlawful pollution of the marine environment
resulting from Seabed Mineral Activities carried out by ISA
Contractors;
(h) encourage the continued development of technology necessary
to recover Seabed Mineral Resources;
(i) faciliate the development of Seabed Mineral Resources to foster
global economic and social development by promoting an
alternative supply of mineral resources essential to satisfying
the present and future development needs of countries and to
alleviating poverty and increasing global living standards; and
(j) ensure present and future access to the nickel, copper, cobalt,
and manganese resources of the deep seabed which will be
important to the industrial needs of the nations of the world,
both developed and developing.

Nauruan Seabed Minerals Administrator
The functions of the Administrator will be to:
regulate Seabed Mineral Activities being carried out by ISA
Contractors in accordance with the Act and the State’s Sponsorship
Responsibilities;
administer the system for granting Licenses to ISA Contractors to
engage in Seabed Mineral Activities;
enforce the provisions of the Act to ensure that ISA Contractors
carrying out Seabed Mineral Activities comply with their obligations
under the Act, the Convention and the ISA’s Rules and Regulations;
take necessary and appropriate administrative measures to secure
compliance of ISA Contractors carrying out Seabed Mineral Activities
with their obligations under the Act, the Convention and the ISA’s
Rules and Regulations;
supervise, monitor and inspect the Seabed Mineral Activities in
accordance with the Act;
recommend regulations to be made under the Act;

Nauruan Seabed Minerals Administrator
cooperate with the ISA in the establishment and implementation of
programmes for monitoring and evaluating the impacts of deep
seabed mining on the marine environment;
enforce the provisions of the Act to ensure that recourse is available
for prompt and adequate compensation or other relief in respect of
damages caused by wrongful acts committed by ISA Contractors in
the course of carrying out Seabed Mineral Activities,
keep under review developments in international law pertaining to
Seabed Mineral Activities and the State’s Sponsorship
Responsibilities;
Establish procedures for the cooperation and coordination with the
ISA with regards to securing compliance of ISA Contractors carrying
out Seabed Mineral Activities; and
apply a precautionary approach, as reflected in Principle 15 of the
Rio Declaration, in order to ensure effective protection for the marine
environment from unlawful harmful effects which may arise from
Seabed Mineral Activities.

Capacity Building in Nauru
Marine Science
DSM Regulatory Framework Administration
NORI DSM Project
‣ Pre-Employment Traineeships
‣ Staff Recruitment
‣ Career Planning, Professional Development

NORI DSM Capacity Building
Pre‐Employment Traineeships
‣ Training for Nauruan Nationals job applicants not already possessing the
requisite skills for the Project.
‣ Build capacity of Nauruan Nationals to participate in Project
employment.
Recruitment
‣ Increase representation;
‣ Build the skills base;
‣ Expand career options; and
‣ Increase economic participation,
of Nauruan Nationals in the Project’s workforce.

NORI DSM Capacity Building
Career Planning, Professional Development and
Development of Sustainable Employment
‣ Development of career paths for already experienced
Nauruan National employees to move beyond operator and
trades roles;
‣ Provide sustainable employment and skills development to
ensure opportunities exist to further advance their career.;
‣ E.g. study assistance and scholarships, development of
technical capabilities, building of commercial skills,
leadership development, technical training and experience
etc.

Capacity Building for Developing
State Nationals
NORI has a binding obligation to carry out comprehensive
training programs for developing State nationals nominated
by the ISA.
NORI’s training programs will focus on enhancing the
skills and experience of scientists from developing States
including engineers, marine biologists, oceanographers,
geophysicists and geologists.

NORI’s Exploration
NORI has world leading polymetallic nodule technical capacity,
including a team of international experts many of whom were
leaders of the largest programs of seafloor polymetallic nodule
exploration and engineering conducted to date.
NORI is committed to applying world’s best practice in
environmental protection and has strong environmental
credentials with international experts on its technical team.
NORI will be conducting exploration to gather data and carry
out scientific and technological studies.

NORI’s Exploration
NORI is committed to operating in line with the following
internationally accepted Environmental, Social and
Governance principles and standards:
United Nations Global Compact
Millennium Development Goals
IFC Performance Standards on Social and
Environmental Sustainability
World Bank Group Environmental, Health, and Safety
Guidelines
Precautionary Principle