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The Minister for Energy and Clean Growth (Claire Perry)
It is a pleasure to serve under your chairmanship, Mr Hosie, and to respond to the debate secured by my hon. Friend the Member for South East Cornwall (Mrs Murray), who set out her extremely interesting and detailed knowledge of the current situation and the opportunities presented by new technology. She is known to many of us as one who has an almost unique perspective on these matters. Matters maritime and mining run in the blood of Cornish men and women, and she has certainly demonstrated that she is capable of talking with great knowledge about both.
My hon. Friend was responsible for delivering the Deep Sea Mining Act 2014. A private Member’s Bill, it did some incredible work by amending the Deep Sea Mining (Temporary Provisions) Act 1981, which provided only powers to license applications in relation to polymetallic nodules—a rather niche area. Through her work, the 2014 Act extended that to apply to all minerals found in the deep sea, opening the way, as she rightly said, for the UK to sponsor applications to the ISA for all minerals in the future. It was striking that that Bill received cross-party support in Parliament. During its passage, my hon. Friend expressed the need to carry out economic exploitation in a sensitive environment with the utmost environmental concern and caution.
My hon. Friend also managed to steer the Marine Navigation Act 2013 successfully through Parliament. Again, that is a tribute to her commitment and her family’s longstanding involvement with the sea. She does a brilliant job of representing her constituency. She pointed out how we need to move forward in maritime matters and mining.
I will start by giving some context. The UN convention on the law of the sea established that the mineral resources of the seabed are the common heritage of mankind and sit beyond national jurisdiction. As my hon. Friend well knows, reserves of terrestrial minerals are dwindling. There is a rich opportunity out there, which she rightly points out is critical to many of the new technology challenges that we are facing and rising to meet. That has led to pressure on the International Seabed Authority to set out a framework for mining the seabed. There have been 29 exploration contracts so far issued from 20 countries to bodies including state-owned enterprises and commercial organisations with a state sponsor, which has been the model that the UK has put forward. I believe that it is approaching two licences so far.
The Deep Sea Mining Act, of which my hon. Friend was the proud steward, enabled the domestic deep sea mining sector to be regulated in a modern way that has due regard for the economic opportunity and aims to prevent damage to the environment. The ISA is now working towards agreeing a mining code that contains technical, financial and environmental provisions by a deadline of March 2020. The UK delegation has been leading at those negotiations.
Given your geographic interest, Mr Hosie, you will know that we have a very profound heritage in the extraction of hydrocarbons and minerals, both onshore and offshore, with the proudest tradition of high environmental standards. We will continue that commitment to transparency, science and evidence-based policy making and environmentally sound regulation to ensure the effective protection of deep sea habitats and biodiversity. The mining code, once it is in place, will enable the ISA to issue so-called “exploitation contracts”—that sounds awful. We should perhaps find a new name for them—perhaps “exploration contracts”. Of course, the UK would need to consider whether these regulations need to be supplemented with additional domestic provisions in line with the Deep Sea Mining Act 2014.
The UK has sponsored two 15-year exploration contracts on behalf of UK Seabed Resources Ltd, which is a subsidiary of Lockheed Martin, the US corporation. The contracts are for polymetallic nodules in the Clarion Clipperton fracture zone of the Pacific. As my hon. Friend has pointed out, these activities and others may allow us to access minerals and metals and achieve safety and security of supply of those materials in the long term.
Also, my hon. Friend rightly joined up the dots to point out that when we talk about our clean growth strategy and the opportunity for the UK’s economy to benefit from investment in low-carbon technologies, such as battery storage and solar energy, they require some of the self-same minerals and metals that are there to be found. If we do it carefully, this work will help us to protect our environment and meet our climate change obligations while creating hundreds of thousands of jobs.
A MOG—machinery of government—change is a very boring term. This whole area has been subject to cross-Government movement recently, and indeed it has been moved to my Department, and I am now the responsible Minister. My hon. Friend will know that I take the issues in my portfolio seriously and try to get things done. Hopefully, it will give her some comfort to know that this subject now sits within the clean growth area of the Department for Business, Energy and Industrial Strategy, having been transferred recently from my excellent colleagues in the Foreign and Commonwealth Office and the Department for Environment, Food and Rural Affairs. I mean no disrespect to them when I say that it may now form part of a more coherent view of the economic potential before us. As the responsible Minister for oil and gas in the UK as well, both onshore and offshore, I assure my hon. Friend that the proud commitment to high regulatory standards will of course apply. In BEIS, we are leading a cross-Whitehall working group to co-ordinate Government activities ahead of the finalisation of the mining code.
My hon. Friend asked me about some of the activities that the Department is undertaking. We have undertaken to analyse the potential economic value to the UK of the first two licences granted in the Clarion Clipperton fracture zone. That work should be completed this summer, ahead of the UN’s ratifications of the regulations this year. We have also made a commitment to the ISA that UK Seabed Resources Ltd, our commercial operator, will undertake a plan of work throughout the period of exploration, reporting back in a very detailed way on all of its exploration activities, including the considerable amount of work it has done on environmental exploration, so that we have a good dataset upon which to base any future regulations.
My hon. Friend will know that this is a long-term investment, so it is quite right to do the turf-rolling now and indeed to make sure that the regulations are fit for purpose. I think it is accepted that commercial-scale deep sea mining operations will probably not begin before the middle of the next decade. Having said that, she pointed out that other countries are starting to move faster than previous estimates suggested, so it may well be the case that these challenges are pulled forward and that we will need to move a little faster. However, understanding the environmental implications of mining some of the deepest seabed or seafloor regions, particularly in the Pacific, is a monumental task.
I pay tribute to the superb piece of work put together by the cross-party Environmental Audit Committee, which is chaired by the hon. Member for Wakefield (Mary Creagh). The Committee did a really superb piece of work in looking at many of these issues, including sustainable seas in general, but very specifically the opportunities and challenges of deep sea mining. That work is really well worth a read.
My hon. Friend asked me essentially what the Government’s plans are. The decision on whether or not our UK-sponsored contractor will go into production will be a commercial one, but we will need to consider—on the evidence—whether we are prepared to sponsor an exploitation licence and on what conditions such a licence should be applied.
I have mentioned before my hon. Friend’s very coherent and eloquent statements about the economic importance of deep sea mining; I suspect that she might have had something to do with persuading the former Prime Minister of the value of this activity, and she quoted some superb statistics to show why it should be examined with great interest. I emphasise, however, that we need to understand our obligations to protect the seabed as well as the water columns and the currents, because the last thing we want to do is to start treating the seas as an infinitely exploitable resource.
We will continue to ensure that effective and binding environmental standards have been adopted and adhered to before we grant any commercial exploration licences, and that the mining activity is part of a well-evidenced environmental plan. My hon. Friend knows that we will continue to use our significant global influence to promote at global level the adoption of our transparent, science-based and environmentally sound approach, and a set of principles that are based on precautionary work, rather than responsiveness.
I am pleased to report that the UK is taking a leading role in international negotiations. As my hon. Friend knows, perhaps better than many others, we have a wide range of deep sea scientific and engineering expertise, and the opportunity to onshore many of the jobs and much of the intellectual property from that is profound. The important question we need to ask ourselves is how to balance exploration in environmentally sensitive areas against the potential risks. I am confident that we can do that; we have done it in many other environments around the world and can continue to do so.
My hon. Friend asked some specific questions about funding for the proposals and about research and development investment. I am pleased to say that UK Research and Innovation would be open to accepting a deep sea mining proposal in a future industrial strategy challenge fund competition. She also asked whether we have made an economic assessment of the dependency on rare earth minerals. I do not know, but I will find out and write to her. I am sure that someone has done that analysis and I am keen to see it.
I offer my heartfelt thanks to my hon. Friend for securing such an interesting and timely debate. As the Minister responsible, I am pleased to tell her that I am committed to taking the issue forward, taking into account the opportunity and what we can do to ensure the work is done in the most environmentally sustainable manner.
Question put and agreed to.