SPC-EU EDF10 Deep Sea Minerals (DSM) Project

Transcription

1 EUROPEAN UNION SPC-EU EDF10 Deep Sea Minerals (DSM) Project 2014 Annual Report 1 st January 31 st December 2014 Delegates of Pacific Small Island Developing States during a side meeting at the 20 th International Seabed Authority Session in Kingston Jamaica in 2014

2 Prepared by: Akuila K. Tawake Geoscience Division Secretariat of the Pacific Community July 2015 IMPORTANT NOTICE This report has been produced with the financial assistance of the European Union. The views expressed herein do not necessarily reflect the official opinion of the European Union. More copies of this report can be obtained from the address below: Geoscience Division Secretariat of the Pacific Community (SPC) Private Mail Bag GPO, Suva FIJI ISLANDS Phone: Fax:

3 CONTENTS LIST OF ACRONYMS... 5 EXECUTIVE SUMMARY INTRODUCTION Project Staff Update Two Year No-Cost Extension to the Project KEY RESULT AREA 2: Formulation of National Deep Seabed Minerals Policy, Legislation and Regulations Development of National Legal Instruments Summary of Policy and Legislation Development KEY RESULT AREA 3: Strengthened and Increased National Capacities Regional Training Workshop Regional DSM Financial Framework Timor Leste National DSM Training Workshop Short-Term Training Courses Engagement with the ISA Project Internship Schemes International Negotiation Course Information Sharing and Awareness Procurement of Office Equipment KEY RESULT AREA 4: Effective management and mechanisms for the monitoring of offshore exploration and mining operations SPC-UNEP/GRID-Arendal DSM Assessment Report SPC-NIWA Collaboration Development of the Deep Sea Minerals Scientific Research Guidelines Regional DSM Environmental Management Framework OTHER PROJECT INITIATIVES Geoscience Steering Group Meeting Partnership with JICA Assessment Report of Kiribati Manganese Nodules Independent Review of Exploration Activities in Tonga Project Steering Committee Meeting

4 6. CHALLENGES SUSTAINABILITY AND OWNERSHIP COMMUNICATION AND VISIBILITY PROJECT MID-TERM EVALUATION CONSULTANTS PPROJECT FINANCES PROJECT LOGICAL FRAMEWORK

5 LIST OF ACRONYMS ACP AG ANU AusAID CCFZ CSO DEC DGMWR DMPGM DSM DSMSR DTM EDF10 EDF11 EDMS EEZ EIA EITI EU FBE FFA FSM GDP GIS GPS GSD GSO IMF INSMB ISA JICA KIOST MEED MFMRD MLSNR African-Caribbean-Pacific Group of Countries Attorney General Australia National University Australian Aid Clarion-Clipperton Fracture Zone Civil Society Organisation Department of Environment and Conservation, PNG Department of Geology, Mines and Water Resources, Vanuatu Department of Minerals Policy and Geohazard Management, PNG Deep Sea Minerals Deep Sea Minerals Scientific Research Digital Terrane Model 10 th European Development Fund 11 th European Development Fund Electronic Data Management System Exclusive Economic Zone Environmental Impact Assessment Extractive Industry Transparency Initiative European Union Faculty of Business and Economics Pacific Fisheries Forum Agency Federated States of Micronesia Gross Domestic Product Geographical Information System Global Positioning System Geoscience Division of SPC Geological Survey Organisation International Monetary Fund RMI s Interim National Seabed Minerals Management Board International Seabed Authority Japan International Cooperation Korea Institute of Ocean Science and Technology Mineral Exploration and Exploitation Decree, Fiji Ministry of Fisheries and Marine Resources Development, Kiribati Ministry of Lands, Survey and Natural Resources, Tonga 5

6 MRD MMERE MREL MTE NAO NGOs NIWA NOMC NRD NSA NSWF PFTAC PIFS PNG RAO RLRF RMI RMMD ROM SBMA SIDS SOPAC SPC SPREP SQL ToR UN UNEP USGS USP VMRD Mineral Resources Department, Fiji Ministry of Mines, Energy and Rural Electrification Marawa Research and Exploration Limited Mid-Term Evaluation National Authorising Officer Non-governmental Organisation National Institute of Water and Atmospheric Research National Offshore Minerals Committee Natural Resources Division of MLSNR, Tonga Non-State Actors Norwegian Sovereign Wealth Fund Pacific Financial and Technical Assistance Centre Pacific Islands Forum Secretariat Papua New Guinea Regional Authorising officer Pacific ACP States Regional Legislative and Regulatory Framework for Deep Sea Minerals Exploration and Exploitation Republic of the Marshall Islands Regional Marine Minerals Database Result Oriented Monitoring Seabed Minerals Authority, Cook Islands Small Islands Developing States Pacific Islands Applied Geoscience Commission Secretariat of the Pacific Community Secretariat of the Pacific Regional Environment Programme Structured Query Language Terms of Reference United Nations United Nations Environment Programme United States Geological Survey University of the South Pacific Vanuatu Mineral Resources Database 6

7 EXECUTIVE SUMMARY The SPC-EU Deep Sea Minerals (DSM) Project (referred to hereinafter as the Project ) achievements in 2014 speak volumes of yet another year of success in terms of implementing project activities as well as attaining tangible outputs. These outputs can be translated to short and long-term positive outcomes that benefit Pacific ACP States which include stakeholder engagement and networking, development of national legal instruments, capacity building initiatives, formulation of a number of regional frameworks for guidance. The implementing period of the Project has been extended by 24 months following the signing of the Addendum 1 to both the Financing Agreement and Contribution Agreement in February The Project will end on 3 rd March In responding to country requests, the Project provided assistance to Pacific ACP States in drafting national DSM policy, legislation and regulations as well as expert legal and technical advice during the year. The Project provided the following interventions in 2014: (i) the FSM s Assistant Attorney General was on a two and half week placement with the Project reviewing the country s Seabed Minerals Bill and Licensing Regulations; (ii) a two-day meeting was held in Tarawa in May 2014 to discuss the formulation of the Kiribati Seabed Minerals Policy and the Project was represented by the Legal and Environment Advisors; (iii) reviewed the Minerals Exploration and Exploitation Degree to include provisions on DSM and submitted to Fiji Government; (iv) development of the draft DSM Policy for Solomon Islands; (v) participated in the Vanuatu DSM Policy stakeholder consultation meeting that was held in Port Vila, (vi) reviewed the Cook Islands Environment Regulations to include DSM management, and the Exploration Regulations; and (vii) held discussions with relevant government officials in Palau, Kiribati, and Solomon Islands in the development of their respective DSM policies and laws in Capacity building initiatives continued to be a major priority for the Project in an effort to enhance the knowledge base of key in-country stakeholders and to share relevant DSM information with them. In recognition of the importance of the financial aspects of DSM, it was necessary to convene a training workshop in 2014 to present and discuss issues relating to benefit streams and revenue management options for Extractive Industries from which the DSM sector could learn. It was also important to discuss transparency and governance issues including benefit sharing, and how mining revenue is managed and distributed. The 5 th regional training workshop was held in Rarotonga Cook Islands in May 2014 focused on the financial aspects of DSM activities. This event was jointly organised by SPC through the Project, and the Pacific Financial and Technical Assistance Centre (PFTAC), a subsidiary of the International Monetary Fund (IMF). Additionally, the Project provided support for other capacity building initiatives including internship programmes and short-term attachments / trainings at various institutions. Included in these training activities were (i) one month nodule analysis training for Ms Tokabai Bauro, an Environment Officer at the Ministry of Fisheries and Marine Resources Development (MFMRD) in Kiribati, at the US Geological Survey in February 2014; (ii) sponsored Mr Siale Vailea, of Tonga s Natural Resources Division to attend a marine conservation course at Duke University, USA in June 2014; (iii) supported Ms Ofa Maasi Kaisami in July to attend the Rhodes Academy for Ocean Laws and Policy; and (iv) hosted the Timor Leste National DSM Training Workshop in Dili in November. The Project internship programme was expanded in 2014 to include geology, environment and data management. The legal internship component continues to thrive with a focus on legal aspects where participants have received first-hand experience of the international law framework governing 7

8 DSM. Further, the Project also supported some countries to improve their data management capabilities as this is a significant component of DSM activities. GIS and data management trainings were conducted in Vanuatu and Solomon Islands during the reporting period. In response to requests from Solomon and Vanuatu, the Project has procured selected office equipment to support in-country DSM data management, community awareness and stakeholder consultations. In recognising the importance of working with development partners, the Project collaborated with the Pacific Forum Fisheries Agency (FFA) and the University of Wollongong in organising an International Negotiation Workshop in June The course was held in Wollongong, Australia in June 2014 and the Project sponsored five participants from the Pacific to attend. Additionally, the Japan International Cooperation Agency (JICA) dispatched three Experts on two occasions in 2014 to assist the Project in developing environmental guidelines and establishment of environmental management and monitoring techniques based on current knowledge of seabed mineral resources development and environmental impact study. This part-time partnership would continue in Providing relevant information and sound advice and guidance to Pacific ACP States is essential for prudent and informed decision making on issues relating to DSM. Interesting to note that the Project is developing the following regional framework and guidelines in collaboration with partners: (i) the Pacific Island Countries and Territories Regional Fiscal and Revenue Management Framework for Deep Sea Mineral Activities ; (ii) The Pacific Island Countries and Territories Regional Guidelines for Deep Sea Minerals Scientific Research; and (iii) the Pacific Regional Environment Management Framework (REMF) for Deep Sea Minerals Exploration and Exploitation. These frameworks will be finalised in 2015 and shared with stakeholders. Sharing of relevant DSM information to the public is part of the communication and visibility of the Project hence communication materials such as information brochures, press releases, workshop reports, DSM documentaries, and quarterly newsletters have been shared with government representatives and other stakeholders. The Project has demonstrated the importance of stakeholder engagement and inclusive participation through training workshops and stakeholder consultation and awareness events. Members of the steering committee were given an update on Project activities during the 5 th Project Steering Committee meeting was held in Rarotonga Cook Islands in May While the Project has successfully delivered key outputs in the last four years, it has encountered a number of challenges that need to be managed in order to address or minimise the risks associated with them. In advocating for DSM sustainability, key in-country stakeholders are trained and strongly encouraged to put in place mechanisms that will ensure long term sustainability of DSM revenue streams and the environment for the benefit of current and future generations. Lastly, apart from the integrated approaches mentioned above the Project has been providing financial, advisory and technical support for the implementation of in-country DSM activities in the efforts to transfer ownership of DSM initiatives to Pacific ACP States. 8

9 1. INTRODUCTION The Geoscience Division of SPC in collaboration with the 15 Pacific ACP States and implementing partners continued to implement the SPC-EU DSM Project activities in 2014 in accordance with the project work plan and priorities of each Pacific ACP State. While some activities such as the GIS training in Solomon Islands and Vanuatu were financially supported by the DSM Project and completed in 2014, other activities including legal drafting, internship schemes and short-term attachments continued to be implemented in 2014 and are expected to continue in Notably the Cook Islands and Tonga have continued to be very active in regard to the implementation of in-country DSM activities and they have been actively seeking the assistance and advice of the DSM Project in With the advocacy of the DSM Project, a number of countries including FSM and RMI have responded positively to the DSM Project organised events and have taking the initiative to implement priority DSM activities. In response to Timor Leste s request, the DSM Project organised and hosted a national DSM training workshop that was held in Dili in November The Project continued to provide relevant technical and funding assistance to Pacific ACP States during the reporting period. It has made significant progress in terms of drafting and finalising national DSM policies and legislation for a number of Pacific ACP States. With the assistance of the Project, Tonga and Tuvalu were able to table their DSM laws in parliament and their laws were subsequently passed in parliament. In addition, the Project provided both funding and technical assistance to the Government of FSM during the DSM Bill stakeholder consultations and awareness campaign that were held in all the four States. Capacity building initiatives of the Project were ongoing with emphasis on the regional and national training workshops, data management training, internships, and short-term training as opportunities presented themselves. Also national public awareness and consultations had been supported by the Project in collaboration with government, NGOs and in some cases the private sector. This inclusive stakeholder engagement approach is proven to be effective in communicating DSM activities in the region as well as in other parts of the world and also enhances stakeholder knowledge on issues relating to DSM. Embracing multi-stakeholder engagement allows open exchange of views and encourages stakeholder participation in the DSM debate. These consultative and collaborative initiatives have been welcomed by many countries, stakeholders and development partners in the region. The Pacific ACP States are encouraged to continue using this multi-stakeholder consultative approach as a tool to discuss and resolve issues relating to DSM. This report highlights activities, challenges, and results that had been accomplished by the Project in 2014 in accordance with the three remaining Key Result Areas of the Project 1 and the priorities of Pacific ACP States. 1 Key Result Area 1: Development of Regional Legislative and Regulatory Framework for offshore minerals exploration and mining, was completed in 2012, see: 9

10 1.1 Project Staff Update The new Environment Advisor, Ms Alison Swaddling, joined the Project on 6 th January 2014 following her appointment to the post in late Alison is now responsible for addressing environmental issues relating to DSM activities and she has been working as part of the Project team in implementing the Project work plan and in responding to country requests. The Project s Legal Advisor s (Ms Hannah Lily) three year contract ended in October Ms Lily s contract was extended for another month till 2 nd November 2014 to allow her to complete some specific project tasks. We would like to thank Ms Lily for her enormous contribution to the Project in the last three years. Figure 1: Ms Marie Bourrel Project Legal Advisor. Replacing Ms Lily as the Project Legal Advisor is Ms Marie Bourrel (Figure 1). Prior to joining the Project Ms Bourrel was the Legal Advisor for the Marine Transport Programme at the Economic Development Division of SPC. Ms Bourrel commenced in post in early September 2014 to enable proper handing over of work with Ms Lily. 1.2 Two Year No-Cost Extension to the Project Following the EU endorsement of SPC s application, the Addendum 1 to the Project s Contribution Agreement was signed by the EU and SPC in February This was preceded by the signing of the Addendum 1 to the Financing Agreement by the EU and the RAO. The SPC wishes to express its utmost gratitude to the EU for this extension that allows the Project to fulfil its obligation as the implementing agency. 2. KEY RESULT AREA 2: Formulation of National Deep Seabed Minerals Policy, Legislation and Regulations 2.1 Development of National Legal Instruments The Project continued to provide sound legal advice and drafting assistance to Pacific ACP States during the reporting period. Participating countries of the Project have recognised the significance of the legal drafting assistance provided by SPC through the Project hence an increased number of countries have requested this assistance. The Project was able to respond in a timely manner and as a result these countries were assisted in Additionally, some countries have also requested Project personnel to assist them in conducting national stakeholder consultations and awareness initiatives whereby their respective legal instruments were presented, discussed and public opinion considered. Relevant Project staff 10

11 members were able to attend these events and assisted government officials in presenting relevant DSM information and providing appropriate advice to the public Federated States of Micronesia Stakeholder Consultations on the Seabed Minerals Bill Following the completion of the FSM Seabed Minerals Bill and Licensing Regulations in 2013, the FSM Government had made a request for their Assistant Attorney General (Mr Leonito Bacalando) to be offered a placement with the Project to review the Bill. With the Project s financial support, Mr Bacalando had spent two and half weeks at the Geoscience (GSD) Office in Suva Fiji in April reviewing the Bill with the Project s Legal Advisor. With the approval of Congress, representatives of Congress, the Department of Justice, the Department of Resources and Development, and the Project travelled to all the four States (i.e. Pohnpei, Kosrae, Chuuk, and Yap) in FSM in July to conduct stakeholder consultations on the Bill as well as DSM awareness (Figure 2). The Project was represented by the Legal Advisor (Ms Hannah Lily) and the Environment Advisor (Ms Alison Swaddling). These consultation meetings were funded by the Project. Figure 2: The FSM Government Consultation team including Hannah and Alison with some of the consultation participants in Chuuk State. The Bill was transmitted to Congress in May and was introduced on the floor on 7 July The aim of the meetings was to provide an overview of seabed mineral issues, including FSM s geological potential, seabed mineral developments across the Pacific region, and legal and environmental issues. Obtaining the views of the States to inform the Bill s passage through Congress is of critical importance for FSM to progress further with DSM developments. Consultation meetings were held in all four States: Yap, Chuuk, Pohnpei and Kosrae to present the Bill and consult upon it with State Executive, Legislature and other stakeholders. FSM s 11

12 Seabed Resources Bill 2014 establishes a national seabed resources authority, which will implement and manage licensing, monitoring and enforcement activities Tonga Enactment of the Seabed Minerals Act 2014 The Tongan parliament debated and passed the Seabed Minerals Bill in July A day after the passing of the Bill, Tonga s Permanent Representative to the United Nations, Ambassador Mahe Tupouniua, made a special announcement during the ISA Assembly meeting in Kingston Jamaica informing delegates of the passing of the DSM law in Tonga. Ambassador Tupouniua thanked the EU and SPC for their assistance to Tonga over the years that culminated with the passing of the legislation. The Act (Figure 3) received Royal Assent from His Excellency the King of Tonga and was subsequently gazetted in August This is another milestone for Tonga and the region as Tonga becomes the first country in the world to put in place a law that manages seabed mineral activities within its national marine space and under its sponsorship in international waters. Figure 3: The front page of the Tonga Seabed Minerals Act Tonga s Seabed Minerals Act 2014 was prepared with the assistance of the Deep Sea Minerals Project a partnership between the European Union (EU) and the Secretariat of the Pacific Community (SPC) and 15 Pacific Island countries. Tonga is currently undergoing the development of Seabed Minerals Regulations which, combined with the Act, will equip Tonga with a set of tools that will allow it to manage its deep sea resources to maximise benefits of deep sea mining with a commitment to sound environmental management Kiribati Review of the Draft Seabed Minerals Policy The Government of Kiribati through the Ministry of Fisheries and Marine Resources Development (MFMRD) had initiated a meeting in Tarawa in May 2014 to discuss the formulation of the Kiribati Seabed Minerals Policy. Using the Project Policy template as a guide, the MFMRD developed a draft National DSM Policy through a multi-stakeholder process. The successful development of this Policy is important as it will guide the development of future National DSM Laws and Regulations. The MFMRD requested the Project s financial and technical assistance to progress the policy. In response, both the Project s Legal Advisor and the Environment Advisor attended this two-day Policy development workshop in Tarawa and contributed to the development of the draft Kiribati National DSM Policy. In addition, the project provided funding for the national consultations on the DSM Policy. 12

13 Toward the end of 2014, a request was received by the Project for the drafting of the following three related national DSM legislation for Kiribati: (i) legislation for DSM within national jurisdiction; (ii) legislation for Kiribati s DSM interest in the Area; and (iii) legislation for DSM in both national jurisdiction and the Area. The three draft legislation are expected to be provided to the Government of Kiribati in early Fiji - Review of the Minerals Exploration and Exploration Decree The Fiji Government was able to solicit the assistance of the American Bar Association (ABA) to review the Minerals Exploration and Exploitation Decree (MEED). Upon receipt of the ABA comments on the MEED in early 2014, a workshop was organized by the Fiji Government in April to discuss the review. At the request of Fiji s Minerals Resources Department, the Project s Legal Advisor attended this workshop and was asked to prepare a section on DSM that needs to be included in the Bill. This was prepared and submitted in June Cook Islands Review of the Seabed Licensing Regulations The Project Legal Advisor assisted the Government of Cook Islands in the review of the Seabed Mineral (Environmental Permits and Consents) Regulations that was prepared by a Consultant. In addition, following the completion of the 1 st draft of the Cook Islands Seabed Minerals Exploration Regulations in 2014, the Seabed Minerals Authority (SBMA) had embarked on the review of the regulations and had approach a number of entities to assist with the review. The Project was involved in the review of the Cook Islands Seabed Minerals Licensing Regulations in Vanuatu Stakeholder Consultations on the National DSM Policy The first national consultation meeting on the draft Vanuatu DSM Policy commenced was held in Port Vila in October 2014 (Figure 4). This was the first in a series of consultations to be held in all 6 provinces. The draft Policy sets out Vanuatu s vision and strategic goals in relation to its deep sea minerals, and will form the basis for future drafting of laws in line with the policy. Figure 4: Participants of the stakeholder consutlation meeting that was held in Port Vila in October. 13

14 The Project places great emphasis on the importance of a consultative approach, and encourages all Governments to involve concerned citizens in decisions that may affect natural resources and the environment. The DSM Project will continue to work with Vanuatu s multi-stakeholder National Offshore Minerals Committee, which includes the Vanuatu Association of Non-Governmental Organisations (VANGO), as they progress this work. The Project Environment Advisor attended the meeting together with representatives from: Nautilus Minerals, Neptune Minerals and NIWA. Vanuatu is preparing to resume consultations on the draft national DSM Policy in Republic of the Marshall Islands Establishment of the National Seabed Minerals Management Board An Interim National Seabed Minerals Management Board (INSMB) was established by the Government of the Republic of the Marshall Islands (RMI) formed in October The Board, consisting of a small team of government officers and non-governmental representatives, is tasked by Cabinet to develop national policy and law for the appropriate governance of the nation s deep sea resources and is responsible for RMI s DSM interest. The INSMB is an enabling mechanism for meaningful participation whereby citizens, civil society, private sector and the media can have a role in the development and monitoring of DSM activities in the country. This is critical in order to show respect for the views of stakeholders on such a relatively new and complex subject such as deep sea minerals development. Figure 5: Inaugural meeting of the INSMB in Majuro on 2 nd October The Project s Legal Advisors Ms Hannah Lily and Ms Marie Bourrel attended the INSMB inaugural meeting in October 2014 (Figure 5). The Project worked with the Marshall Islands Attorney General s office to prepare the draft national DSM policy and law. 14

15 2.1.8 Palau Stakeholder Consultation on the Development of National DSM Legal Frameworks The Project Legal Advisor was in Palau in June 2014 to consult with government stakeholders on how the Project could assist the Government of Palau in developing national legal instruments for DSM. In consultation with the Ministry of Natural Resources, Environment and Tourism, and other stakeholders, it was agreed that in the best interest of Palau a desk review of the Petroleum Act (and other relevant national legal instruments) should be undertaken by the Project Solomon Islands Draft DSM Policy With the assistance and guidance of the Project Legal Advisor, Mr Calvy Aonima a Solomon Islander Legal Intern has drafted the Solomon Islands Deep Sea Minerals Policy in At the end of his internship in November, Mr Aonima presented the draft policy to members of the Project team. The draft policy has been sent to Government of Solomon Islands for further review. Additionally, Mr Aonima conducted a legislative review of the laws of Solomon Islands relating to deep sea minerals Tuvalu Passing of the Seabed Minerals Act 2014 In December 2014 the Tuvalu Seabed Minerals Bill was passed in parliament and subsequently received the Government General s assent in the same month. Like the Tonga Seabed Minerals Act, the Tuvalu law (Figure 6) was prepared with the assistance of the EU and SPC through the SPC-EU DSM Project. Ms Nele Samu, a government lawyer, drafted the DSM Bill. She was working with the Project Legal Advisor between August and September to review and finalise draft Seabed Minerals Legislation before being tabled in Parliament. With the assistance of the Project, the Government of Tuvalu is preparing its DSM policy and Seabed Minerals Licensing Regulations and both are expected to be finalised in Figure 6: The front page of the Tuvalu Seabed Minerals Act Other Legal Assistance The Project continued to provide legal advice and assistance on request to Pacific ACP States during the reporting period. Project personnel have been involved in the review / preparation of other legal documents, and responding to ad hoc requests for legal advice from a number of countries. 2.2 Summary of Policy and Legislation Development A summary of the development status of national DSM policy, legislation and regulations is shown in Table 1 below. 15

16 Table 1: Summary of national DSM policy and legislation development. Country DSM Policy DSM Legislation National Offshore Minerals Committee Cook Islands Yes Cook Islands Seabed Minerals Offshore Policy Yes: Enacted Yes FSM Yes: Presented to congress Fiji Under review Yes: International Seabed Minerals Management Decree Kiribati RMI Nauru Niue Palau Yes: Offshore Minerals Policy Draft under review Yes: With cabinet Yes: In draft Yes: Under internal consultations Yes: With cabinet Yes: Draft under review Yes: In draft Yes Yes Yes PNG Samoa Yes: Under review Yes: Under review Yes Yes Solomon Islands Timor Leste Yes: In draft Tonga To be developed Yes: Seabed Minerals Act 2014 Tuvalu Yes: Yes: Seabed Under consultation Minerals Act 2014 Vanuatu Yes: Under consultation Yes Yes 3. KEY RESULT AREA 3: Strengthened and Increased National Capacities This KRA focuses on capacity building initiatives of the Project which include training workshop, internships, short term attachments and trainings, and international conference and meeting attendance. In the last four years (i.e ), a significant number of candidates representing Pacific ACP Sate governments, national and international NGOs, Pacific communities, and the private sector have been trained under these Project initiatives. These events allow numerous 16

17 opportunities for interaction with DSM Experts as well as the sharing of DSM information and enhancing participants DSM knowledge hence informed decisions are made. 3.1 Regional Training Workshop Regional training workshops are considered as excellent fora whereby Experts are not only sharing new knowledge and ideas but also engaging in meaningful discussions with participants and building networks. By encouraging free and inclusive exchange of views on any DSM issues, representatives of governments, communities, civil societies and the privates sector have regarded these fora as an excellent model to emulate at the national level where genuine dialogue is happening and consensus can be reached. Between August 2012 and December 2014 the Project had convened five regional training workshops on different DSM themes th Regional Training Workshop Financial Aspects of DSM In collaboration with the Pacific Financial and Technical Assistance Centre (PFTAC), a subsidiary of the International Monetary Fund (IMF), the Project hosted the 5 th regional DSM training workshop that was held in Rarotonga Cook Islands in May 2014 (Figure 7). The theme of the workshop was Financial Aspects of DSM Activities. PFTAC is responsible for providing technical assistance and training to improve economic management and sustainable economic growth across Pacific Island Countries. Figure 7: Participants of the 5 th Regional DSM training workshop that was held in Rarotonga Cook Islands in May 2014 This workshop was crucial as it focused on mineral taxation and revenue management of proceeds derived from terrestrial mining as well as other extractive industries. In addition, the workshop also covered transparency, good governance and sustainably mechanisms in relation to revenue management. More importantly Pacific ACP States must learn from existing extractive industries and, once deep sea mining commences, they have to have mechanisms in place to ensure DSM revenues are managed prudently. Further, this was the appropriate platform that provided the Project and PFTAC with a mandate and terms of reference to produce the Pacific Islands Regional 17

18 DSM Financial Framework (for review and approval by the Pacific-ACP States, and subsequent publication). This training is part of preparing Pacific ACP States to meaningfully engage in this new industry. If revenue is managed transparently and prudently, a deep sea minerals industry could greatly improve the economies and livelihoods of Pacific Island Countries. Using its international linkages, PFTAC had brought together four world-leading financial and regional experts to share their knowledge on mining fiscal regime and management of revenue emanating from mining and other extractive industries. Though deep sea mining is yet to commence, Pacific Islands are well positioned to put essential policies, laws and procedures in place before mining begins. The Workshop was an important precursor to the Pacific Islands Regional DSM Financial Framework that has been developed by the Project and PFTAC and is currently under review. More details of the workshop are given in the 2014 DSM Project Progress report. 3.2 Regional DSM Financial Framework Part of the collaboration outputs between PFTAC and the Project is the development of the Pacific Island Countries and Territories Regional Fiscal and Revenue Management Framework for Deep Sea Mineral Activities. The first draft of this Framework was developed by IMF fiscal and revenue management Experts and subsequently reviewed by the Project staff in the second half of The draft Framework is expected to be reviewed by IMF Expert based on the Project team s comments and the revised version will be sent to all 15 Pacific ACP States, and representatives of exploration companies, relevant expert agencies and CSOs in Timor Leste National DSM Training Workshop At the request of the Government of Timor Leste, the Project in collaboration with the Ministry of Petroleum and Mineral Resources hosted the Timor Leste National Deep Sea Minerals Training Workshop in November The workshop was held on 17 th 20 th November at the Arbiru Beach Resort in Dili, Timor Leste (Figure 8). The objective of this training workshop was to develop and enhance the knowledge of relevant stakeholders in Timor Leste on the geological, technological, environmental and legal aspects of deep sea minerals. It was also an excellent opportunity to share deep sea minerals information with in-country stakeholders and discuss how the Project could provide legal and technical assistance to Timor Leste. Apart from the Project staff, Dr James Hein, a marine geologist at the US Geological Survey (USGS) was contracted as a resource scientist during the workshop. Dr Hein has 40 years of working as a marine geologist and studying deep sea minerals in many parts of the world. A total of 43 participants representing government agencies, provide sector, and civil society organisations attended the workshop. A representative of the Government of PNG was also supported by the Project to participate in the workshop and to share PNG s experience and lessons learned on the Solwara 1 Project. 18

19 Figure 8: Participants of the Timor Leste DSM training workshop in session. 3.4 Short-Term Training Courses In support of specific capacity building needs of Pacific ACP States, the Project has been responding to short-term training requests as well as initiating certain training opportunities that would benefit participants from the region. One in particular is the data management and GIS training as some Pacific ACP States do not have the capacity and the resources to effectively manage their minerals data including DSM. This was identified as a key area that needed urgent assistance and with the Project s financial support three trainers (two GIS trainers and one data management Specialist) were conducting trainings in Vanuatu and Solomon Islands in Vanuatu Data Management and GIS Trainings Vanuatu requested assistance from the Project for training in the proper management of data and for updating the Vanuatu Minerals Resource Database (VMRD) to ensure that electronic DSM data that have been/will be collected over the years are kept in a safe and orderly manner that can be easily accessed. In response to this request, the Project was able to send two trainers from GSD to run two separate trainings between February and March Figure 9: GPS training in March 2014 was part of the GIS training in Vanuatu. 19

20 The first training covered data management (Figure 4) using Visual Basic and Structured Query Language (SQL) programs and methodologies for two weeks with a total of 13 participants. The second training focused on GIS including GPS training (Figure 9), and tools available to graphically display the data held in Vanuatu s databases and demonstrate GIS usage as a management tool. This training was also conducted over two weeks and attended by fifteen participants representing different government agencies (Lands Department, DGMWR, Department of Forestry, Office of the Government Chief Information Officer, and Office of the Valuer General). The overall objective of the GIS Training was to train participants on GIS Tools, GIS Software, GPS handling and map generation. The Government departments were encouraged to further use GIS tools to provide better and accurate mapping solutions. Detail account of these two trainings is given in the 2014 progress report Solomon Islands Data Management and GIS Trainings A two-week data management training was provided to 13 participants from the following government departments: Mines, Water, Lands and Forestry in Solomon Islands. Mr Leonard Wong (the GSD data management Expert) was in Honiara on 21 st May 2 nd June 2014 to conduct this training (Figure 10). Apart from the actual data management training the trainer also used this opportunity to implement two database applications. The two applications that were launched during the training are Spatial Catalogue System (which was built during the course of training) and the EDMS which would store their catalogue of documents. This training was important as it provided with participants the initial skill sets to manage their own data and to develop and maintain their own database systems. Figure 10: Data management training at the Ministry of Mines in Honiara Solomon Islands. 20

21 With financial support of the Project, Mr Bryan Pitakia (a local GIS Consultant) was contracted for two months (i.e. in January and February) to complete a basic GIS training at the Ministry of Mines, Energy and Rural Electrification (MMERE) in Honiara. Mr Pitakia had trained 11 staff at the Ministry of Mines on geological/minerals data analysis and interpretation using relevant GIS and RS techniques. This training would enable the MMERE to strengthen its data management capacity hence data and maps could be used to promote Solomon Island s terrestrial and marine minerals potential. Figure 11: Participants of the GIS training at the Ministry of Mines in Solomon Islands. Building on the success of the first phase of the GIS training that was conducted in late 2013 and early 2014, the MMERE requested for an advanced GIS training in order to equip relevant staff of the Ministry with the necessary GIS knowledge and skills. The MMERE required better data management in order to efficiently promote its terrestrial and marine potentials as well as to monitor and manage mining activities in the country. The Project contracted Ms Joy Papao, a local GIS Consultant, to conduct this GIS training phase 2 (Figure 11) for a period of 4 months (i.e. July October). After consulting with Divisional Heads, it was decided that this GIS training would involve a smaller group and to cover specific requirements of each departments with an objective to achieve end products at the end of the training DSM Training Placement at USGS Ms Tokabai Bauro, an Environment Research Officer at the Ministry of Fisheries and Marine Resources Development (MFMRD) was nominated by the Government of Kiribati and supported by the Project to undertake a month-long training placement in February 2014 at the USGS in Santa Cruz California. Ms Bauro was exposed to data analysis including mineral and metal contents in nodule samples. Kiribati also has a state-owned enterprise, Marawa Research and Exploration Limited (MREL) that in collaboration with a partner will explore for manganese nodules in the Clarion-Clipperton Fracture Zone (CCZ). The skills Ms Bauro gained from her experience at USGS would be applicable in both Kiribati s own nodule potential in their EEZ as well as its exploration interest in the CCZ Environment Training at Duke University As part of the Project s capacity building initiative, Mr Siale Vailea, a Senior Geologist from the Natural Resources Division in Tonga was funded to attend a marine conservation course at Duke University, USA in June 2014 (Figure 12). This annual program is an intensive 5-week course that utilizes a multi-disciplinary approach to engage students and professionals with global marine 21

22 conservation topics at the forefront of global ocean health and conservation of marine biodiversity. The course covered topics such as: Human Dimensions and Marine Environment, Deep Sea Resources, Law and Policy, Marine Invasive Species, Marine Vertebrate Conservation and US Oceans Law and Marine Conservation Synthesis. The course offered a great opportunity for Mr Vailea to learn and extend his knowledge in marine environment and conservation. Mr Vailea was able to gain a deeper understanding of the history of international law of the sea and marine governance, and the attributes of major deep sea ecosystems. With enhanced knowledge in marine environment and conservation, Mr Vailea would contribute effectively to the DSM discussions in Tonga and the Pacific region on issues relating to environment impacts and protection. Figure 12: Participants at the Duke University Summer Institute on Marine Conservation in June. Mr Vailea is in the first row on the left Ocean Laws and Policy Training at Rhodes Academy The Project supported Ms Ofa Maasi Kaisami in July to attend the Rhodes Academy for Ocean Laws and Policy. She was the first Tongan awardee of the ISA Endowment Fund that covered a returned air ticket and accommodation while the Project had to provide her daily subsistence and transit allowances. The Rhodes Academy provides a unique opportunity for participants to broaden their understanding of maritime law set out in international agreements and national state practice. 22

23 Ms Kaisami learned about continental shelf, deep seabed minerals, navigation, maritime boundaries, fisheries regime, marine scientific research and marine protection during this training. The knowledge gained during this training would enable Ms Kaisami to provide both legal and technical advice to the Government of Tonga. Additionally, she is now able to contribute more effectively to the discussion on deep-sea bed minerals development in region, how the industry can be properly regulated, as well as for Tonga to meet its obligations under the UNCLOS. At the end of the training Ms Kaisami was awarded with a Diploma as a Scholar on Ocean Laws and Policy (Figure 13). Figure 13: Ms Kaisami receiving her Diploma during the 2014 graduation ceremony. 3.5 Engagement with the ISA The Project continued to engage with the International Seabed Authority (ISA) on DSM matters relevant to Pacific ACP States. In recent years, more PICs have participated at the ISA annual sessions due to the Project s sponsorship and advocacy The ISA Stakeholder Survey The ISA released a stakeholder survey (Figure 14) in March 2014 as it commenced the development of a regulatory framework for the future recovery of mineral resources from the Area. The objectives of this survey are as follows: to identify a broad stakeholder base through submissions received; to begin a process of stakeholder engagement and consultation for activities in the Area; to benefit from the early views and expert opinions from the stakeholder base. Figure 14: A copy of the 1 st ISA stakeholder survey. These objectives, and a commitment to the principles of fairness and transparency, would allow the ISA to begin development of a regulatory framework which incorporates contemporary best practice. Secondly, the survey would influence extremely important future ISA regulations, including (i) the rules for 23

24 mining the seabed beyond national jurisdiction ( the Area ) and (ii) how any proceeds from that mining will be shared for the Common Heritage of Mankind. These are matters of high relevance and interest to all developing States, and also to Governments interested to hold or sponsor contracts in the Area. Once the ISA s rules are finalised, national Governments will be required to match those rules in their national laws for seabed minerals within their EEZs. It is therefore very important for PICs to participate in this survey, to ensure that the voices of developing Pacific nations are heard. The Project participated in this survey and submitted a collective response to the ISA in May. In addition, it encouraged its member countries to participate, and to send a response to the ISA Pacific Delegates Attending the 20 th ISA Session The 20th Session of the International Seabed Authority (ISA) was held in Kingston, Jamaica on July, The ISA is an autonomous international organisation created by the 1982 United Nations Convention on the Law of the Sea (UNCLOS), and is the mechanism through which State parties manage the seabed mineral resources of international waters, commonly known as the Area. UNCLOS designates the Area and its seabed resources as the Common Heritage of Mankind. The Project coordinated the participation of Pacific States at the 2014 ISA sessions. The Project held additional side meetings with Pacific island representatives where delegates were encouraged to make interventions during the ISA Council and Assembly meetings and to declare their country s interest in the Area. Delegates (Figure 15) were also encouraged to approach investment partners and initiate discussions on potential collaboration and joint ventures. The Tongan Ambassador to the United Nations, Mr Mahe Tupouniua, emphasised the importance of the region working together at the ISA meetings. In May 2014, the DSM Project held a half-day preparatory session in the Cook Islands to go over the importance of attending the sessions and what to expect. The DSM Project prepared a briefing paper, which outlined points of consideration and issues that the States may want to raise at the session in Jamaica, prior to the ISA sessions. All Pacific-ACP States are Party to UNCLOS and are thereby members of the ISA. The PICs are commonly referred to as Pacific Small Islands Developing States (PSIDS) at the United Nations as well as at the ISA. The Project sponsored six PSIDS delegates to attend the 2014 ISA Session: Mr Paul Lynch (Cook Islands), Ms Tebete England (Kiribati), Mr Asavi Kendua (PNG), Mr Lameko Talia (Samoa), Mr Faatasi Malologa (Tuvalu), and Mr Christopher Ioan (Vanuatu). Representatives from Tonga and Fiji as well as other officials from Cook Islands and Kiribati attended the meeting with funding from their respective governments. A total of 16 representatives from 8 Pacific countries were present at the 2014 ISA Sessions. Chief Geoscientist of the Secretariat of the Pacific Community s (SPC) Geoscience Division (GSD), Mr Kifle Kahsai, and the Project Manager, Mr Akuila Tawake, also attended the sessions to provide advice and assistance as necessary to these representatives. 24

25 Figure 15: PSIDS delegates who attended the 2014 ISA Session. Issues raised by Pacific Island representatives during the Council and Assembly meetings included: capacity building, environmental management and protection, Environmental Management Plan for the Area, development of national policy and law, finalisation of the Environment Regulations, partnership with exploration companies, assessment of the contract that will expire in 2016/2017, criteria for exploration contract renewal and the possible establishment of a smaller ISA office in the Pacific/South East Asia region. The DSM Project was pleased that its member countries were recognising the importance and value of attending the ISA sessions with eight PSIDS attending the 2014 Sessions, and increase from three in The successful outcomes of the ISA sessions for the Pacific were: Tonga was elected to the ISA Council for the first time for the period Fiji, a current Council member, was re-elected to the Council for the period Project Internship Schemes As part of our capacity-building initiative, the Project established a successful Internship Programme. To-date, this programme has focused on legal aspects of DSM where participants have received first-hand experience of the international law framework governing the deep sea minerals sector. The programme has recently expanded to also include geology, geographical information system (GIS) and general project internships. More information about the internship schemes and the previous participants is on the website: 25

26 4.6.1 Legal Internship The Project s legal internship programme continued to attract much interest from law graduates in the region. A total of nine legal interns joined the Project s legal internship in during the reporting period. The tasks assigned to each of them are given in Table 2 below. In addition, Mr Leonito Bacalando, FSM s Assistant Attorney General spent three weeks with the Project in April reviewing the national Seabed Minerals Bill and wrote an executive summary of the legislation. Table 2: List of Legal Interns between January December 2014 highlighting the major tasks that each of them was responsible for. Name Country Duration Major Tasks 1. Mr Teona Ivano PNG January 20 March Mr Eric Iban RMI April 28 May Ms Theresa Momoisea 4. Mr Melino Bain- Vete Samoa 5. Mr Calvy Aonima Solomon Islands June 9 August 1 Fiji/Tonga June 16 August 8 August 4 November Mr Asterio Takashi Tuvalu October 20 November 14 Compiled the first draft paper on the Global Ocean Commission Research and comparison between the provisions in the UNCLOS relating to DSM and a legal analysis on whether the benefits of the seabed minerals have been realised by developing nations. Reviewed and provided comments on the draft law, regulation of the Marshall Islands Seabed Minerals Bill Did legal research and did a review of the first draft of the Global Ocean Commission, finalising the second draft which will be used in future for DSM Completed a review of the Fiji s Offshore Minerals Policy and Brochure on Environment and Biology associated with nodules Completed a desk Legislative Review of the Solomon Islands laws and also completed a draft Deep Sea Minerals Policy for Solomon Islands Completed a desk Legislative Review for one of the Project member country s laws. 7. Mr Leonito (Jun) Bacalando FSM Assistant Attorney General April 3 April 21 Reviewed and finalised the Seabed Minerals Bill and wrote an executive summary of the legislation. 26

27 8. Ms Nele Semu Tuvalu AG Crown Counsel August 4 September 6 Carried out relevant draft legislative reforms required of Tuvalu s DSM law and facilitated the review of this law in Tuvalu before it was passed in Parliament. 9. Ms Patricia Grundler Nauru Patricia Paralegal Officer Drafting Division August 22 September 5 Finalised the International Seabed Minerals Legislation. 10. Ms Unaisi Daurewa Unaisi Senior Government Lawyer Drafting Division, Department of Justice September 1 September 12 Finalised the International Seabed Minerals Legislation. More information about the Project legal internship programme can be viewed on the Project website: GIS Internship Mr Marino Wichman of Cook Islands was supported by the Project to undertake a GIS internship at GSD. Marino is currently employed by the Cook Islands Seabed Minerals Authority (SBMA) as GIS Officer and the purpose of his internship was to build the GIS capacity of the SBMA. During his 3-month internship in Suva, from 10th February to 2nd May 2014, Marino worked closely with geo-spatial professionals and assessed storage, manipulation, management and analysis protocols of spatial data. He was able to generate geological models of Cook Islands manganese nodule metal contents and abundance based on previous survey data during this attachment. Whilst in Suva, Mr Wichman attended a five day workshop that was held at the University of the South Pacific, aimed to better understand the potential of ArcGIS (a database management software). This workshop further boosted Mr Wichman s knowledge and ability as a GIS Expert that would be invaluable to the SBMA Geology Internship The first geology intern to join the Project was Ms Christine Prasad (Figure 16), a Fijian who graduated from the University of Otago, New Zealand in Christine was a Project Intern for 6 months (i.e. between September 2013 and February 2014) prior to her new permanent appointment as a Junior Geologist with the Geoscience for Development Programme of the GSD. 27

28 During her internship Christine was responsible for reviewing a number of Project reports, validating manganese nodule samples in GSD s storage facility, sending nodule samples to research institutions such as US Geological Survey (USGS) and the University of Leicester, preparing preliminary information brochures on the DSM potential of a number of PICs. Figure 16: Ms Christine Prasad, first Project Geology Intern. In addition, two British geology graduates Messrs James Davis and Sebastian Betton, both from the University of Leicester, joined the Project s geology internship in Mr Davies was at GSD from 27th January to 9th May while Mr Betton was in Suva between 23 rd August and 11 th September Mr Davis was responsible for collating existing seabed minerals data for Fiji, Republic of the Marshall Islands (RMI) and Kiribati and wrote summary reports that are useful to these countries, reviewed draft country-specific information brochures on the seabed mineral resources of Papua New Guinea, Solomon Islands, Vanuatu, Niue and Palau. As part of his placement, James spent four weeks in the Cook Islands working on manganese nodule research with the Cook Islands Seabed Minerals Authority, where he produced a report on the profile of sea-floor sediments and a sensitivity analysis of the SBMA s seabed minerals economic model. Although Mr Betton had spent a relatively shorter period with the Project, he was assigned to summarise the DSM characteristics of a number of countries particularly Kiribati, variation of metal prices in the world market, and review a number of country-specific DSM potential information brochures using existing data and information Environment Internship The Project has initiated an Environmental Internship Scheme commencing in November The aim of this scheme is to build a sustainable source of in-country environmental expertise, as the interns are encouraged to return to their country to work with national authorities involved in deep sea mineral activities. This scheme provides a 1-2-month internship position with the Project at the GSD campus in Suva Fiji. Figure 17: Mr Melino Bain-Vete, Legal and Environment Intern. Mr Melino Bain-Vete (Figure 17), a Tongan Fijian, was the first Environment Intern for the Project. He worked closely with the Project s Environment Advisor on developing Project-related publications in the environment context, including research tasks, amending the DSM EIA template and other ad hoc tasks for the DSM Project. 28

29 Mr Bain-Vete completed his Masters in Environmental Law and Sustainable Development at London University. He was previously a Legal Intern for the Project and was interested in the environmental aspects of DSM. With the experience gained through the Project internship schemes, Mr Bain-Vete will be a great asset for both Tonga and Fiji. 3.7 International Negotiation Course The Pacific Forum Fisheries Agency (FFA) and the University of Wollongong had organised an International Negotiation Workshop in collaboration with the Project in June This training was designed to transform Pacific Island government officials into top negotiators that would enable them to negotiate fair deals with multinational companies when it comes to the development of their resources such as fisheries and deep sea minerals. The course was held in Wollongong, Australia in June 2014 and included a full-day session on deep sea minerals run by the Project s Legal Advisor. Participants were divided into a number of breakout groups and given the opportunity to practice their negotiation skills (Figure 18). The Project sponsored the following five participants from the Pacific to attend: Mr Johnathan Kawakami (Assistant Attorney General, RMI), Ms Yolanda Lodge (Assistant Attorney General, RMI), Ms Zoe Genet (Crown Counsel, Cook Islands), Mr Jun Bacalando (Assistant Attorney General, FSM), and Mr Tokabai Bauro (Deputy Secretary, Ministry of Fisheries and Marine Resources, Kiribati). Figure 18: Course participants practicing their negotiation skills at the University of Wollongong. 3.8 Information Sharing and Awareness The information sharing initiatives of the Project were ongoing in These included sharing hard and electronic communication materials with representatives of Pacific ACP States and other stakeholders, communications through media releases, workshops, videos and quarterly newsletters. Increasing stakeholder engagement was also realised during the reporting period. The Project provided technical and funding support to participating countries of the Project to organise and participate in DSM awareness raising activities. The following DSM awareness raising activities were conducted in

30 3.8.1 Kiribati DSM Awareness The Kiribati National Offshore Minerals Committee (NOMC) through the Minerals Division of the MFMRD had been very active in organising DSM awareness events in Kiribati. With the Project s assistance the Kiribati NOMC initiated a series of monthly national radio shows to share information on DSM. The information was translated into the local language on the radio program Nimaua Akea on Kiribati Radio. After the show, listeners were invited to call in to answer DSMrelated questions USP DSM Debate As a result of the Project information sharing and awareness, the University of the South Pacific (USP) recognises that DSM can potentially become a major economic development sector in the Pacific Islands region. In an effort to raise awareness on the subject, a student debate on deep sea mining was organised by the Faculty of Business and Economics (FBE). Mr Akuila Tawake, the Project Team Leader, was invited to participate as one of the three judges. The debate was held at the USP main campus in Suva Fiji on 2 nd May The debate topic chosen by the FBE was Seabed mining is essential for Pacific Island Countries Prosperity. The students had conducted extensive research displaying in-depth knowledge on the issues related to deep sea minerals in the Pacific and in other parts of the world. All the debaters made references to the Project initiatives and the information provided in the Project website Fiji DSM Debate The Fiji Minerals Resources Department (MRD) in collaboration with the SPC, the European Union, the Korea Institute of Ocean Science and Technology (KIOST), and the University of the South Pacific (USP), held a meeting on Challenges and Opportunities of Sea Bed Mining in the Pacific Island Region in Suva in August This meeting was convened to raise awareness on issues relating to DSM and to provide an open and transparent avenue for stakeholders to discuss and exchange views on the benefits and challenges of deep sea mining. The program included a youth debate and panel discussion with the aim of raising awareness of deep sea minerals in the Pacific region, and address options, methods and solutions to determine the best way forward for developing countries such as Fiji. Eight USP students participated at the event debating on the merits and challenges of deep sea mining for Fiji and the region (Figure 19). The Project also provided the prizes for the debaters, the winning team as well as the best debater. The Best Individual Debater prize was awarded to Mr Ziyad Parvez, a first year law student at USP. The meeting was attended by representatives from MRD, SPC, KIOST, Korean Embassy, European Union Delegation for the Pacific, USP, University of Arizona (UA), World Wildlife Fund (WWF), International Union for Conservation of Nature (IUCN), the Wildlife Conservation Society (WCS), Fiji Mining and Quarrying Council, Fiji Navy, Attorney General s Office, Department of Fisheries, Ministry of itaukei Affairs, itaukei Land Trust Board (TLTB), Ministry of Lands and Mineral Resources - Lands Department, Ministry of Foreign Affairs and International Cooperation, Ministry of Information, Bluewater Minerals, and Nautilus Minerals Inc. 30

31 Figure 19: DSM Debate in progress at the Holiday Inn, Suva in August. The panel discussion was moderated by Mr Stanley Simpson, a freelance journalist. The panelists were: Mr Malakai Finau (Director, Minerals Resources Department, Fiji), Mr Akuila Tawake, (Team Leader DSM Project, SPC), Mr Greg Morris (Country Manager, Namosi Joint Venture), Ms Sally Bailey (WWF), and Mr Jang Bang (Tonga-Fiji Country Manager, KIOST). Mr Malakai Finau stated that the MRD is the regulator for Deep Sea Minerals explorations and mining in Fiji. He acknowledged the challenges and opportunities in Deep Sea Minerals faced by the government to have technical environment expertise and the necessary supporting officers in place. He also mentioned the need for a robust legal framework, and the importance of the Offshore Mineral Policy and for the Mining Act to incorporate Deep Sea Minerals Tonga DSM Awareness Initiative With the financial support of the Project, The Natural Resources Division of the Ministry of Lands, Survey and Natural Resources (MLSNR) had initiated a nationwide DSM awareness programme. This programme entails radio talkback shows, TV interviews and the screening of the Project documentaries on TV in Tonga. During the radio talkback shows, Mr Taaniela Kula, the Deputy Secretary Natural Resources Division, would be interviewed on the radio and members of the public would ask him any questions related to DSM activities in Tonga and elsewhere. Mr Kula said that the awareness programme has been very effective in informing the public about DSM activities in the country DSM Discussion at the SIDS Conference The 2014 United Nations Small Island Developing States (SIDS) conference was held in Apia, Samoa in September. The conference was themed The sustainable development of Small 31

32 Island developing States through genuine and durable partnerships and was attended by UN member states and partners, including 166 governments, 85 UN entities and other intergovernmental organizations, and nearly 1,200 civil society organizations. This SIDS conference covered wide range of topics, including Sustainable Economic Development, Climate Change and Disaster Risk Management, Social development in SIDS, Health and NCDs, Youth and Women, Sustainable energy, Oceans, Seas and Biodiversity, Water and Sanitation, Food Security and Waste Management. Most of these topics fall within the mandate of SPC hence 24 staff led by the Director General, Dr Colin Tukuitonga, had participated. The Project was represented by the Environment Advisor, Ms Alison Swaddling. Deep sea minerals was mentioned in two of the six partnership dialog sessions: Oceans, Seas and Biodiversity; and Sustainable Economic Development. Dr Suka Mangisi, of the Kingdom of Tonga, made an intervention during the Ocean Seas and Biodiversity Partnership dialog session, acknowledging the Project as a successful partnership between Pacific Countries, SPC and the European Union, working to assist Pacific States to improve the governance and management of their deep sea mineral resources. Mr Mangisi commended a number of Project initiatives including the development of the Pacific Regional Legislative and Regulatory Framework (RLRF), which was used by Tonga in the development of its Seabed Minerals Act, which received Royal Assent in September Figure 20: Ms Alison Swaddling (2 nd from right) giving a presentation on DSM in the Pacific at the SIDS conference in Apia. Additionally, the Japanese Ocean Policy Research Foundation (OPRF) held a side event at the conference titled For the better conservation and management of islands and their surrounding areas to which SPC and specifically the DSM Project, was invited to present. Ms Swaddling gave a brief presentation on DSM in the Pacific, the objectives and achievements of the DSM Project, and potential collaboration with OPRF and other partners (Figure 20). Ms Swaddling also participated in the panel discussion. The purpose of the side event was to launch an Islands and Ocean Network. The SIDS conference was a great opportunity to showcase the Project s successful partnerships. 32

33 3.8.6 Information Brochures In addition to the two country-specific information brochures that were published in in the first half of 2014, the first information brochure highlighting the environmental aspects of deep sea mineral development was also finalised and published during the reporting period (Figure 21). It highlights the environment and biology associated with hydrothermal vents (active and inactive vents), as well as potential environmental impacts of mining SMS deposits. The information brochure on the deep sea minerals potential of the Federated States of Micronesia (FSM) covers a summary of DSM survey results conducted since the early 1990s highlighting the crusts potential within the country s EEZ. The Tuvalu information brochure contains the investigation results of the 1988 Japan-SOPAC survey that occurred within the EEZ of Tuvalu. Figure 21: The two information brochures that were prepared and published in This is part of the Project s ongoing initiative to share relevant information and build the knowledge base of Pacific ACP States on matters pertaining to DSM activities. Hard copies of these information brochures have been shared and delivered with representatives of Pacific ACP States. Electronic copies are available in the Project webpage Project Newsletter The Project quarterly newsletter, The Prospect, continues to cover activities and major project achievements that were accomplished in each quarter of The idea behind the newsletter is to ensure that stakeholders throughout the region are kept informed on recent and planned 33

34 Project activities and related issues in the region and beyond. The three Issues (Issues 4, 5 and 6) of the newsletter that were prepared and published in 2014 had been distributed to stakeholders. The 4 th Issue includes coverage on the data management and GIS capacity building as well as linkages with research and conservation agencies to share DSM information and forge new partnerships. The Project internship scheme is also covered and apart from the legal internship geology and GIS interns have also been part of this initiative. The 5 th Issue covers the 5 th regional DSM training workshop as well as a number of stakeholder consultation and awareness initiatives. The new partnership with Japan International Cooperation Agency (JICA) to address certain DSM issues, and the international negotiation training that was held in Wollongong Australia are also highlighted. The newsletters are also available on the Project s webpage. The news in relation to the strong presence of Pacific Delegates at the 20 th ISA Session as well as the passing of the Tonga Seabed Minerals Act appeared in the 6 th Issue of the newsletter (Figure 22). Included are the stakeholder consultations and awareness as well as capacity building initiatives supported by the Project. An update on the Project s internship programme, and an overview of DSM activities in Pacific ACP States have also been highlighted in the newsletter. Figure 22: The 5 th Issue of the Project quarterly newsletter The Prospect Other Initiatives The Project continued to deliver a number of public presentations during the reporting period including guest lectures at the University of the South Pacific, the Geoscience Steering Group meeting that was held in Nadi Fiji in March 2013, and a number of international meetings and workshops. These are excellent opportunities to share DSM information, promote DSM potential of PICs, discuss collaboration opportunities with partners, and strengthen geo-resources related initiatives with Pacific ACP States. 3.9 Procurement of Office Equipment In response to requests from the Governments of Solomon and Vanuatu, the Project has procured or is in the process of procuring office equipment to support in-country DSM data management, community awareness and stakeholder consultation. 34

35 3.9.1 Equipment support for Vanuatu During the VMRD assessment in November 2013, it was established that the Minerals Section of DGMWR was in need of new computers to support the database. This requirement was again highlighted in the data management and GIS trainings in February and March 2014 recommending that the Project to purchase two PC workstations with windows 7 that are able to cater for the database entry and also GIS applications. Figure 23: Ms Kristy Haruel using one of the two PC workstations in the Mineral Section s office in Port Vila. A formal request was made by the Government of Vanuatu to GSD for the purchase of the two PC workstations. In consultation with the Commissioner of Mines in Vanuatu, two workstations were purchased in accordance with SPC procurement policy and delivered to the Minerals Section in Port Vila in May One of the PC workstations is shown in Figure 23 above. Further, additional data storage discs were purchased for Vanuatu to boost the government data storage capacity Equipment support for Solomon Islands At the request of the Government of Solomon Islands, a server and a digital scanner-copier had been purchased for the Ministry of Mines, Energy and Rural Electrification (MMERE) to improve minerals data storage and management. These equipment were procured in accordance with the SPC procurement policy and delivered to the Geology Division in late

36 4. KEY RESULT AREA 4: Effective management and mechanisms for the monitoring of offshore exploration and mining operations 4.1 SPC-UNEP/GRID-Arendal DSM Assessment Report Following the official launch of the SPC-UNEP/GRID-Arendal publication in Nadi Fiji in December 2013, the Project had been sharing both hard and soft copies of this report with Pacific ACP States (Figure 14) and other stakeholders and interested parties. In ensuring wide in-country distribution, each participating country of the Project was again sent 10 sets of this publication in late The report is available in SPC-NIWA Collaboration Development of the Deep Sea Minerals Scientific Research Guidelines In March 2014, the Secretariat of the Pacific Community (SPC), through the Project, and the National Institute of Water and Atmospheric Research (NIWA) of New Zealand had signed an Agreement to jointly develop The Pacific Island Countries and Territories Regional Guidelines for Deep Sea Minerals Scientific Research (the DSMSR Guidelines). This partnership is consistent with Key Result Area 4 of the Project in developing monitoring systems for deep-sea mining operations through (i) appropriate regional environmental monitoring guidelines for environmental management, and (ii) the participation of competent marine research group(s) in monitoring of offshore mining sites, and (iii) in consultation with the government and marine research groups, provide relevant information to stakeholders. Under this partnership, the AGTD of SPC will provide input and oversight through the Project, as well as obtaining review and comment from Pacific Island Government representatives. NIWA, on the other hand, will provide key experts to develop the DSMSR Guidelines as part of its contribution. Dr Malcolm Clark, a Principal Scientist and Programme Leader (Marine Biological Resources) at NIWA will be the leading expert responsible for coordinating the development and review of the Guidelines. Figure 24: The draft DSMSR Guidelines. This DSMSR Guidelines contain two parts - Part 1 will capture the regulatory component, while Part 2 covers the scientific processes and a research plan for PICTs. The first draft of the DSMSR Guidelines was completed in 2014 (Figure 24) and it is expected to be reviewed, finalised and published by the end of

37 The DSMSR Guidelines will be used by PICTs to develop their respective national DSM scientific research guidelines and/or regulations aimed to ensure that activities relating to deep-sea minerals research within national jurisdiction are performed in accordance with international standards and best practice. In addition, the guidelines will contain provisions that, if implemented nationally, will benefit countries in terms of securing capacity building opportunities and scientific data from any DSM research initiatives permitted in accordance with the regulations. 4.3 Regional DSM Environmental Management Framework Another significant deliverable of the Project is the formulation of the Pacific Regional Environment Management Framework (REMF) for Deep Sea Minerals Exploration and Exploitation. The Terms of Reference (ToR) for the development of the REMF was prepared in late 2014 and the first draft is expected to be completed in the first half of OTHER PROJECT INITIATIVES 5.1 Geoscience Steering Group Meeting Recognising that DSM resources cannot be managed independently from other geo-resources such as on-land minerals, aggregates and petroleum, it was prudent to hold a workshop to discuss a range of topics related to the role of national geological survey organisations/agencies in the management of geo-resources. In bigger Pacific ACP States such as PNG, Solomon Islands, Fiji, and Timor Leste, these resources are managed by the same government agency responsible for mineral resources / mining and petroleum / natural resources. Figure 25: Paricipants of the Inaugural meeting of the Geoscience Steering Group in Nadi Fiji in April

38 In support of the integration of DSM into the management of geo-resources in Pacific ACP States, the Project supported a two-day inaugural meeting of the Geoscience Steering Group (GSG) that was held Tanoa International Hotel, Nadi Fiji in April A group of senior government officials representing different island settings and capabilities were invited to participate in this meeting (Figure 25). The membership of this group will most likely be expanded to include other PICTs. It was decided that GSG will be meeting at least once a year depending on funding availability. The meeting recommended that matters related to geoscience and development be included in the scope of the GSG. Thematic areas that were identified during the workshop are: Natural Resources (minerals, petroleum, water, ocean thermal energy, geothermal); Infrastructures; Marine & Coastal Geoscience; Geo-data & Information; Education and Awareness; Urban & Rural Development; Geo-hazards; GIS and Remote Sensing; Drilling; and Geo-parks and Tourism. 5.2 Partnership with JICA Following the success of GSD s application for a Japan International Cooperation Agency (JICA) technical assistance, three part-time JICA-funded Experts were dispatch to GSD in early 2014 and again toward the end of the year. The objectives of this collaboration are to collect and analyze the basic information about ocean environment for the development of seabed mineral resources in Oceania countries, and to provide advice and guidance about settlement of legislation and guidelines, and environmental management and monitoring. A ToR was developed and agreed between SPC and JICA for this collaboration. These three Experts: Mr Kiyoshi Kawasaki, Mr Takumi Onuma, and Dr Atusi Ninomiya were based at the GSD office in Suva from the duration of their stay in Fiji. Figure 26: Ms Vira Atalifo (second from right) and Dr Atsushi Ninomiya (right) with officials of the Department of Environment and Conservation (DEC) in Papua New Guinea. Activities that have been undertaken as part of this collaboration include: (i) collection, investigation and analysis of basic information: collection of existed reports and published information, implementation of basic field study and information gathering in PNG, Fiji, Solomon Islands and Kiribati; (ii) Information sharing, advice and proposal for settlement of legislation and guidelines for environmental management in seabed mineral resources development; (iii) capacity building for organizations in Oceania countries related to environmental monitoring for 38

39 seabed mineral resources development; and (iv) Promotion of cooperation with other organizations and stakeholders. This collaboration will strengthen in-country knowledge of existing DSM information and data previously collected for the four aforementioned countries. Dr Atusi Ninomiya (JICA Geologist), Ms Vira Atalifo (Project Support Officer), Ms Annie Kwan Sing (Legal Assistant) went on a road show of meetings to the four countries, visiting relevant government departments and authorities, industry businesses, and civil society groups (Figure 26). This part-time partnership is expected to continue until the end of Assessment Report of Kiribati Manganese Nodules A new report has been compiled on the manganese nodule resources in Kiribati s Exclusive Economic Zone (EEZ). At the request of the Government of Kiribati, the Project contracted David Cronan, Emeritus Professor at the Imperial College in London, to compile an assessment report on the Distribution, Abundance and Composition of Manganese Nodules in the Kiribati Exclusive Economic Zone Central Equational Pacific. Figure 27: Professor David Cronan (right) hands the new report to the GSD Director, Professor Mike Petterson (left). Based on previous DSM research and exploration as well as a Geological Model developed in the late 1990s on nodule variability in the South Pacific, the compilation of a report on manganese nodules potential within the EEZ of Kiribati was necessary. Second, a recently developed interest in rare earth elements as well as green technology necessitated a re- 39

40 examination of Kiribati nodule data for information on these elements that may contribute to the viability of nodule mining in Kiribati. Prof Cronan was at the GSD office in Suva Fiji to deliver copies of the report (Figure 27) and make a presentation to the Project team members. The report reveals that higher nodule abundances occur in the southern Line Islands and Phoenix Islands within Kiribati s EEZs. Based on present knowledge, the Line Islands probably offer the greatest economic potential for nodules. In 2012, the Project in collaboration with the Government of Cook Islands has produced a similar report on the nodule potential within the EEZ of Cook Islands. 5.4 Independent Review of Exploration Activities in Tonga Three exploration companies are currently conducting DSM exploration within the Exclusive Economic Zone (EEZ) of Tonga. They are (i) Nautilus Minerals Tonga, (ii) Bluewater Metals (South Pacific) Ltd, and (iii) Korea Institute of Ocean Science and Technology (KIOST). All these companies are targeting Seafloor Massive Sulphide (SMS) deposits in the Lau Back-Arc Basin and the surrounding areas within the EEZ of Tonga. At the request of the Government of Tonga, Mr Akuila Tawake the Project Team Leader was in Nukua lofa Tonga in early November 2014 to carry out an independent review of all the reports (i.e. technical, progress, and annual reports) that have been submitted by these exploration companies to the Ministry of Lands, Survey and Natural Resources (MLSNR). This review was based on the technical/progress/annual reports that were made available to Mr Tawake. The objectives of this initiative are to: review all technical, progress and annual reports submitted by Exploration Companies; determine the depth of scientific (particularly geological and environmental) research and exploration activities; identify and highlight the loop holes in exploration and reporting, and; provide advice and a summary report to the Natural Resources Division (NRD) of MLSNR. At the conclusion of the review, a draft report was sent to Mr Taaniela Kula, the Deputy Secretary NRD for comments, and the final report was sent to Mr Kula at the end of November. 5.5 Project Steering Committee Meeting The 5 th Project Steering Committee meeting was again held in Rarotonga Cook Islands on 12 th May 2014 (Figure 28). Ten of the fifteen participating countries of the Project were represented during the meeting. Palau, FSM, Niue, Solomon Islands and Timor Leste were not represented during the meeting. Also in attendance were Mr Albert Cerelala, the officer in charge of the Project at the European Union Delegation for the Pacific in Suva, and Mr Jerry Huekwahin, of the Office of the Regional Authoring Officer (RAO). The Project Team Leader gave a presentation highlighting the achievements, ongoing activities as well as the challenges that have been encountered during the year. The 2013 work plan was also tabled during the meeting. This was followed by the Project Legal Advisor s presentation on the 2013 International Seabed Authority Annual Session and the principle of Free, Prior and Informed Consent seeking guidance from the Steering Committee on proposed future activities 40

41 in these two areas of interest. Each country representative was allocated 5 minutes to give an update of DSM activities in their respective countries. The country representatives were highly satisfied with the progress of project activity implementation and they urged the Project to continue working closely with Pacific ACP States and partners. The minutes of the meeting was prepared and sent to attendees for comments before it was finalised. A copy of the minutes can be found in the Project 2014 Progress report. Figure 28: Mr Taaniela Kula of Tonga making an intervention during the Steering Committee meeting in Rarotonga Cook Islands in May CHALLENGES While the Project has successfully delivered a number of key outputs in 2014 and the preceding years, it has had its fair share of challenges that make variable impacts on the implementation of Project activities. These challenges need to be recognised, assessed and managed. Listed in Table 3 below are the major challenges encountered during the last four years and how the Project has been responding to each of them in order to minimise their impacts. Table 3: List of challenges encountered by the Project with corresponding mitigating measures undertaken. Challenges 1. Lack of or delayed responses from some countries and the need to re-schedule planned Mitigating Measures (i) Regular consultation with in-country focal points and relevant agencies representatives on how best to implement priority activities; (ii) regularly 41

42 activities. encourage in-country focal points and key stakeholders to implement DSM activities; and (iii) developed and implemented an adaptive and responsive work plan. 2. Delayed deep sea mineral activities by exploration companies have affected the project capacity building schedule. 3. The campaign by a number of Civil Society Organizations (CSO) against the Project was not anticipated during the project design. 4. Prolonged in-country review process for national DSM legal instruments is anticipated. 5. High number of requests for legal advice and assistance, overwhelming the Legal Advisor s work capacity - and limited availability of Consultants competent in this new legal area. 6. Lack of expert advice on deep sea environment and fisheries has led countries to raise their concern about the potential impacts of deep sea mineral activities on the ocean living resources. (i) Negotiated alternative capacity building initiatives with other partners such as the USGS and ISA; (ii) increased the number of regional training workshops to address specific issues relating to DSM, and (iii) sponsor selected PIC candidates to attend international DSM related conferences and workshops. Ongoing and persistent engagement with many CSO representatives in national and regional meetings and workshops (including training workshops, and consultation and awareness meetings) to: (i) ensure that CSOs are part of the decision making process, (ii) educate them on all aspects of DSM; (iii) share DSM information with them on a regular basis, and (iv). (i) Ongoing discussions with a number of countries on how to accelerate the review and enactment of national DSM policy and law, (ii) targeting higher level intervention (i.e. Minister and Secretary levels) to speed up the review process and enactment of law, and (iii) a regional training workshop on DSM Policy Formulation and Legal Drafting will be organised in (i) Recruitment of a Legal Assistant, to support the Legal Advisor s work and enable her to prioritise her time on substantive legal requests, (ii) creative use of legal consultants where possible: i.e. using lawyers with non-dsm but related expertise for set tasks under supervision, (iii) Better utilisation of legal interns to provide the required assistance, (iv) increased the number of government legal officers on placement with the Project to be trained on legal issues related to DSM, and policy formulation and legal drafting. (i) engaged fisheries experts from the FAME Division of SPC, PNA Secretariat, and NIWA to participate in regional training workshops and provide science-based advice, (ii) a Project Environment Advisor has been recruited to provide appropriate advice, and relevant environmental data and information to Pacific ACP States, and (iii) held two regional training workshops on the Environment Aspects of DSM and will host 42

43 7. Absence of full time national focal points have resulted in the slow implementation of incountry DSM activities another one in late (i) At the request of certain countries, the Project has funded local consultants and graduates to carry out specific DSM tasks for each country, (ii) Project personnel are providing technical and legal assistance to the countries, and (iii) encouraged and supported multistakeholder approach to task implementation (including government agencies, CSOs, private sector). 7. SUSTAINABILITY AND OWNERSHIP The Pacific ACP States are strongly encouraged to ensure long term sustainability of revenue and benefits emanating from any deep sea mining project. As highlighted in the 2013 ROM (Result Oriented Monitoring) report, sustainability of the benefits will depend on prudent use of revenue streams and in the establishment and wise use of sovereign wealth funds. Right from the Project s inaugural stakeholder consultation workshop that was held in 2011, transparent and good governance measures in mining revenue management has been regularly emphasised in the Project organised events. From the outset, mining economists, revenue and sovereign wealth fund experts have been invited and supported to attend and provide advice during regional stakeholder consultation and training workshops. Relevant experts from renowned institutions such as the World Bank, UNEP GRID-Arendal, IHC Mining, and the International Monetary Fund (IMF) have been engaged to shed light on revenue management and the benefits of saving schemes with excellent examples from around the world. The Project had collaborated with the IMF through PFTAC (Pacific Financial Technical Assistance Centre) in convening the 5 th Regional DSM Training Workshop in Rarotonga Cook Islands that specifically focused on the Financial Aspects of Deep Sea Minerals. In addition to the establishment of NOMC (National Offshore Minerals Committee) in many countries, the government of PNG, Cook Islands, and Tonga have either established or strengthened relevant national institutions to be responsible for their respective DSM interests. Other countries such as Kiribati, Solomon Islands and Fiji are using their existing government structures to address issues relating to DSM. As part of ownership transfer, the Project is providing advisory and financial support for NOMC activities in a number of countries whereby members of this committee are actually implementing in-country Project activities. However, despite all the Project initiatives such as assisting countries to put in place necessary national legal instruments, filling knowledge gaps, sharing DSM information, and encouraging national stakeholder participation, some countries have clearly demonstrated that they would require external assistance to regulate and be involved in DSM activities. This external support will enable them to fully realise their DSM potential and the subsequent benefits emanating from deep sea mining. 43

44 Most Pacific ACP States would require specific budgetary allocation, technical expertise and technology requirement in order to embrace and effectively support in-country DSM activities. These challenges have been raised multiple times in Project meetings and acknowledged as well beyond the capability of Pacific ACP States. Country representatives have agreed that regional intervention will continue to play a prominent role in this new industry in the future. With the Pacific ACP States support it would be prudent for SPC to secure another major funding in order to sustain this regional cooperative approach to DSM in the Pacific. 8. COMMUNICATION AND VISIBILITY Communicating relevant information continues to be part of the Project s priority during the reporting period in an effort to inform stakeholders and the public on various issues relating to DSM as well as Project activities, outputs and outcomes. In addition to the information sharing initiatives of the Project as highlighted in Section 3.6 of this report, press releases have been issued from time to time as part of the Project s communication and visibility. Major Project events that were covered in the press releases and published in various media outlets throughout the region are: (i) 5 th regional DSM training workshops, (ii) collaboration with JICA; (iii) Fiji National DSM Debate; (iv) participation of Pacific Delegates in the 20 th ISA Session; (v) Nationwide DSM stakeholder consultation in FSM; (vi) passing of the Tonga Seabed Minerals Act 2015; (vii) National Consultations on DSM Policy in Vanuatu; (viii) Timor Leste National DSM training workshop; and (ix) national DSM consultation and awareness initiatives. Major Project events conducted during the reporting period had been adequately covered in press releases and Project newsletters. Two Project press releases are shown in Figure 29. Figure 29: Project press releases on (i) the National consultation on DSM Policy in Vanuatu, and (ii) the passing of the Tonga Seabed Minerals Law in August 2014, and. Further, banner and posters were 44