Deep Sea Mining Bill

Debate between Alistair Burt and Russell Brown

Friday 6th September 2013 Commons Chamber

[Alistair Burt]

Thank you, Mr Deputy Speaker.

The procedures for handling applications to explore for minerals on the deep sea bed are set out in the regulations adopted by the authority—one set for each type of minerals, polymetallic nodules, polymetallic sulphides and cobalt-rich crusts. The applicant makes an application to the authority, and pays the fee of $500,000. But as we have indicated, there is a certificate of sponsorship from the state party concerned; it is stipulated in the convention that all applications must be sponsored by a state party.

Because of the concerns voiced about environmental protection, I have taken the liberty of obtaining a copy of the two applications for licences that we have made under that sponsorship. The House will be pleased to know that in both, the issue of environmental standards is put forward by a representative of the United Kingdom, who makes the application on behalf of the company being sponsored. So environmental protection is at the heart of the application that is made by the United Kingdom when sponsorship applications are made.

[Mr Russell Brown]

For clarity, would the Minister be prepared to put copies of those documents in the Library for other Members to inspect, should they wish?

[Alistair Burt]

I do not know yet, because these are applications relating to commercial companies. I will check. My understanding is that when the application is made to the ISA, there is a nomination process which is led by a speech or a recommendation by the representative of the sponsoring state, to explain that it backs the application. So the document relates to a specific company. I genuinely do not know whether these are public documents. If they are, I do not think there would be any problem, but I must check.

However, I do not think there would be any problem in my reading out the appropriate section in one of the applications. It states:

“As was made plain last year—and indeed the United Kingdom has said on a number of occasions in the Assembly and the Council—the United Kingdom is committed to ensuring the highest environmental standards for companies which it sponsors under Part XI.”

Again, our experts have looked at the application by this particular company and are entirely satisfied that the company will be applying the highest environmental standards. I know from my personal contacts with the company that they feel equally strongly about the need to do so.

So not only is there a pledge on behalf of the United Kingdom Government, and accordingly we can be held to that, but there is a recognition, because it is a narrow field and people know one another, of the importance of it personally to those involved. I say that simply to give a sense of how seriously environmental protection is taken; the House need not be worried that it is glossed over in any way.

The standard clauses for exploration contracts granted by the ISA are also covered by published documents, which set out what environmental monitoring is necessary. Those documents are available. We might talk to the Library about making any of these documents available before the Committee, so that Members will see what the ISA says, what we say, and so on. I hope that that will help.

Having made the sponsored application, the applicant makes a presentation to the legal and technical commission of the authority. As I have said, in the case of applications sponsored by the United Kingdom, the Government send representatives to speak during the presentations in the legal and technical commission, to demonstrate not only our support for the applications but the responsibility that we take as a Government for them. I hope that is reassuring. After approval by the legal and technical commission, the applications are forwarded to the council.

We were very pleased that the first application sponsored by the UK was successfully approved by the International Seabed Authority in 2012, and that the contract between the British company and the authority was signed earlier this year. The second application was put to the legal and technical commission this year, although, disappointingly, it was not approved by the commission because of lack of time. We hope, however, that the application will be approved by the commission next year. We are convinced that it is a first-class application.

I would like to pay tribute to the staff of the International Seabed Authority, particularly its Secretary General, Mr Odunton of Ghana, and his deputy, Michael Lodge, who is British. We have found them knowledgeable and helpful, and we have enjoyed a fruitful working relationship with them over many years.

My hon. Friend the Member for South East Cornwall rightly referred to an event in March this year to mark the signing of an exploration contract granted by the International Seabed Authority to a UK-registered company. That licence, for the exploration of polymetallic nodules, is in an area of the mid-Pacific ocean at depths of around 4 km below sea level. The Minister for Universities and Science, my right hon. Friend the Member for Havant (Mr Willetts), who spoke at the event, called the new venture a

“huge vote of confidence in the UK”,

and declared that we have the skills and technology to make it a success. As a number of colleagues have said, we want the United Kingdom to be a world leader in this regard. He talked of how the decision to grant a licence reflected British technological strengths in areas such as marine engineering and marine science, and how it would give British companies and British scientists the opportunity to undertake groundbreaking work in fields such as deep sea biology.

The 1981 Act was sufficient to do the job—to ensure the UK Government had sufficient jurisdiction and control over the UK company in order for it to sponsor its first application in 2012. Now we want to ensure that British companies are able to take up the opportunities available to explore for different mineral types—the point made by the hon. Member for Brent North—namely polymetallic sulphides and cobalt-rich crusts, and we want to ensure that we are fully compliant with UNCLOS.

The Bill is really about the balance between commercial companies’ need to find the resources that the world seeks and environmental protection. It is also about saying, “The United Kingdom is open for business in this sphere.” We can say to any company that seeks the United Kingdom’s sponsorship of an application for polymetallic sulphides or cobalt-rich crusts, “Yes, we can sponsor your application.” But at present, without this Bill, because of the changes in technology, if they were applying for minerals outside the scope of the legislation, we would have to turn such companies away. That is why the change is necessary. The Government simply do not believe that that would be the correct position for our country to be in. At its heart, the Bill is designed to enable the United Kingdom to take advantage of the opportunities that this new, emerging and very exciting technology offers us.

As we have discussed this morning, the Bill is quite a technical measure, with all the substantive amendments to the 1981 Act being set out in a schedule to the Bill. I could say a good deal about each of the amendments, but that might stretch the patience of the House, so I will not go through them in any great detail. We have covered a lot in the interventions and discussions that we have had. The point to make is that the Act is being brought up to date in relation to the sort of minerals that are now available for exploitation and in relation to changes in the law. It deals with some of the technical aspects relating to Scotland and other jurisdictions, but it keeps at its heart the need to balance commercial opportunity with environmental protection, which has already proved to be successful. But none of us is naive, and none of us can forget that there are states that operate differently. Without being absolutely certain that international regulation will follow the sort of intentions that we in this House would have, the Government will not be happy. In our dealings with the ISA, we will look to ensure that that works its way through.

The amendments in the schedule refer to changing definitions of the minerals to be exploited, appropriate dates for corresponding contracts with the ISA, the tightening up of the licences, and ensuring that reciprocal recognition is brought up to date. They provide for important work to be done to arbitrate disputes and deal with the international tribunal for the law of the sea and to ensure that it is relevant in relation to this work. They remove redundant terms and bodies and ensure that the terms used in the Act are up to date.

As we have heard, despite the Bill’s title and the 1981 Act, no mining or exploitation has been conducted in the deep sea by a UK company or any other company. Even with the most optimistic outlook, this is probably five years off for polymetallic nodules and longer for other mineral types.

The International Seabed Authority developed regulations for the exploration of polymetallic nodules some 10 years ago. To date it has issued 13 contracts and is in the process of issuing more. They are all for areas in the Clarion-Clipperton fracture zone in the equatorial north Pacific ocean, except for one in the central Indian basin of the Indian ocean. Exploration regulations for polymetallic sulphides were agreed in the past few years, with the authority issuing contracts to China, Russia, Korea and France, and cobalt-rich crust regulations were only agreed in 2012, since when there have been only a couple of applications.

Of the total of 23 contracts awarded or pending, over half were submitted in the past few years. That gives an indication of how the pace of interest and demand has changed, which is another reason why my hon. Friend the Member for South East Cornwall has proposed this Bill at this stage and why it is important to support it and make progress.

At this year’s annual meeting, the ISA’s council discussed a paper on the process towards development of a regulatory framework for the exploitation of polymetallic nodules. As I have said, so far the activity in relation to deep-sea mining has been confined to exploration, but the time for exploitation—that is, mining—is coming. I know that the secretariat to the authority is acutely aware of the challenges that will be posed by the development of regulations for the exploitation of polymetallic nodules. It has, therefore, sensibly engaged a well-respected team of consultants to look at the issues. I have here a copy of the consultants’ report, which is on the authority’s website. It sets out clearly and carefully the issues with which the authority will have to grapple. It is entitled, “Towards the Development of a Regulatory Framework for Polymetallic Nodule Exploitation in the Area”, and I commend it to the House and to colleagues who have expressed their interest in the affair today.

It is worth reiterating two points that the UK made clear in our statement. First, we emphasised that polymetallic nodule exploitation must be conducted in accordance with the highest environmental standards. Secondly—I believe we were alone in the states that spoke to make this point—we called for full engagement with all stakeholders, including contractors, technology providers and non-governmental organisations, in the development of a regulatory regime. I hope that that is of interest to the House and its needs.

I repeat those points because they are essential and lie at the heart of our approach. It is only by working together to develop a regime that we will be able to strike the right balance between protecting the environment and encouraging commercial enterprises. Stakeholders need to pool their knowledge and expertise, including that in the economics of deep-sea mining, the technology available and the biology of the environment involved, in order to begin to understand the full picture and reach the best solutions. We see environmental NGOs as important contributors in that process. Officials already engage with NGOs at authority meetings. I had a meeting with officials in advance of this Second Reading debate and have promised more consultations in advance of future meetings. We see this as an ongoing collaboration.

The Government believe that, given the advances in technology, a likely increase in future demand for mineral resources and a steady if not increasing cost for those resources, deep sea-bed mining is inevitable. It is a question of when, not if. In other words, deep-sea mining is going to happen and we could not stop it even if we wanted to. The fact that companies have started to take up exploration licences from the ISA when previously they were the domain of research institutes is a sign of a new phase in development. A UK-registered company is one of those that have taken up a licence and it is our clear intention to be at the forefront of this emerging industry. It is important that the UK should be in that position. This is an opportunity for us to ensure that our values, particularly in the protection of the environment, should be taken into account.

We believe that this Bill, modest though it is in some ways, is a crucial stepping stone in ensuring that the United Kingdom can be in the right place to influence developments. We believe that, as a responsible sponsoring and licensing state, we will be able to fulfil our obligations to ensure that the highest environmental standards are adopted and applied by our licensees in the work that they carry out. I can also assure the House that we will make use of our leadership role as a sponsoring state to try to ensure that the best possible practices are adopted when the ISA develops a regulatory regime for mining.

In conclusion, the Government believe that the Bill will signal our support for and readiness to uphold UNCLOS, provide leadership in calling for and upholding the highest possible environmental standards, and ensure that the UK aims to make the most of the opportunities offered by this increasingly important industry. I cannot commend the House enough for the attention it has paid to my hon. Friend the Member for South East Cornwall’s Bill and I cannot commend her enough for proposing it. I look forward to taking it further with the consent of the House, with the intention of maintaining the balance we have all strived to achieve in the past few years.