Updates on the Exploration Licensing Process
What stage of the Exploration Licensing Process are we in now?
Currently the Licensing Panel are evaluating and scoring the three applications. This includes assessing the proposed exploration activities, the applicants’ financial resources and technical ability, their compliance and risk management systems as well as national interest. They also take into account the comments received during the Public Notification stage.
What happened during the Public Notification stage?
The Authority released a package of information on the applications on its website, notified Crown agencies and consulted with the National Environment Service. The Authority’s website was visited approximately 5,000 times over this four-week period. The Advisory Committee and the Licensing Panel also undertook question and answer sessions with the three applicants.
Five sets of submissions were received from members of the public and stakeholder groups. These were passed on to the applicants who provided responses to the submitters. The Authority also answered questions addressed to them. The submissions and responses are available on the Authority’s website.
What were some key points raised during the Public Notification stage?
Key issues focused on environmental data collection and setting Biodiversity Preservation Areas (BPAs), as well as the potential effects of future harvesting. One submitter preferred that no exploration licences be issued in line with the IUCN moratorium call. Another submitter considered that the testing of harvesting equipment was essential to inform any future EIA.
Why does Government not support a moratorium on issuing exploration licences?
The Cook Islands Government supports exploratory research activities through issuing exploration licences, and other means such as funded scientific expeditions.
In line with the precautionary approach, Government does not currently support harvesting of nodules as there currently isn’t sufficient information on the marine environment, potential environmental impacts and how they can be addressed.
All stakeholders, including government and civil society, agree on the importance of making decisions based on science. The collection of data to do this costs tens of millions of dollars.
There is unlikely to be substantial exploration research on the Cook Islands deep sea environment if there is a moratorium on granting exploration licences.
The Authority will continue to take a cautious and careful approach to the development of the seabed minerals sector supported by robust regulatory and environmental frameworks.
Why weren’t the full applications published?
The applications contain commercially sensitive information. Protection of this confidential information is a standard practice as seen in overseas jurisdictions such as New Zealand and Australia.
Government considers that environmental information should be published. As such, the applicants’ proposed Environmental Management Programmes were released on the Authority’s website.
The Authority has conducted this exploration licensing process in an open and transparent manner, and will continue to look at how it can better inform and engage with the public and its stakeholders.
When will a decision be expected on the grant or decline of exploration licences?
The Licensing Panel is expected to make its recommendations to the Minister on whether to grant or decline in December, with the Minister expected to make his decision shortly after.
If Exploration licences are granted, will a company have the right to a mining licence in the future?
An exploration licence does not confer any right to a mining licence.
The Seabed Minerals Act is very clear that a company must meet a range of criteria before they can be granted a mining licence, not least those involving protection of the marine environment, in line with the precautionary approach.
This is a risk that companies take in applying to undertake SBM activities in Cook Islands waters, and this is the same in most other jurisdictions in the world.
What are the next steps in the licensing process?
This will depend on the Panel’s recommendations and the Minister’s decision thereafter.
If the Panel recommend to decline one or more of the applications, then the Minister must decline.
If the Panel recommend to grant one or more of the applications, and if the Minister agrees, then the Authority will draft exploration licences including any specific licence conditions to provide to the applicant. The draft licence must then be approved by the Minister and Cabinet.
In either event, a written statement of reasons for the decisions will be published on the Authority’s website.
For more information please visit the Authority’s website: www.sbma.gov.ck
Source by: Seabed Minerals Authority