DEVELOPMENT OF THE RESOURCES OF THE AREA
Section: Part XI, Articles 133-191
Articles 150-155
Activities in the Area are to be organized, carried out, and controlled by the Sea-Bed Authority. The Authority is to conduct its undertaking in such a manner as to foster healthy development of world economy and balanced growth of international trade and to promote both just and stable prices remunerative to producers and fair to consumers as well as a long-term equilibrium between supply and demand. These goals are inherent in the provisions on production policy as well, and are the logical and consistent development of the overriding principle that the Area and its resources are to be developed for the benefit of mankind as a whole. Further policies to be followed are inter alia (a) responsible conduct in the Area and on the world mineral markets, (b) acquisition and transfer of technology, (c) raising and use of all kinds of revenues from activities in the Area, (d) enhancement of opportunities for activities for all states, and (e) taking at each step the interests and needs of particular states or particular groups of states into consideration. These general policy aims are to be accepted and supported by all states, their nationals, and the Enterprise when conducting activities in the Area under the organization and control of the Authority, and are regulated in particular in Annexes III (Basic Conditions of Prospecting, Exploration, and Exploitation) and IV (Statute of the Enterprise).
For an interim period of up to twenty-five years (beginning five years before first commercial production), the Authority must adhere to a detailed production policy for polymetallic nodules, which is to be calculated on the basis of the projected world nickel consumption. Production authorizations for operators are also to be issued in accordance with these projections. The Authority has further the power to limit the production of minerals other than those in polymetallic nodules and may implement compensation schemes or take economic measures for developing countries which might suffer adverse effects as a result of the production policy issued.
The performance of the Authority is to be reviewed by the Assembly at intervals of five years with the aim of improving the practice of the deep-sea mining regime. In addition, the Assembly is to convene a Review Conference fifteen years after commercial production commences.
In summary, it can be said that the duties entrusted to the Authority go beyond those of simple administrative nature. The Authority is to take any measures necessary to promote the growth, efficiency, and stability of markets of commodities produced from minerals derived from the Area and can enforce such policies by means of the right to participate in any commodity conference and the right to become a party to any arrangement or agreement resulting from such a conference. The Authority's duties and rights are intended to enable management with political effect, but it must avoid discrimination in the exercise of its power and functions and monopolization of activities in the Area.
DEVELOPMENT OF RESOURCES
Section: Part XI, Articles 133-191
POLICIES RELATING TO ACTIVITIES, ARTICLES 150 AND 151
Activities in the Area are to promote
In General: - Healthy development of world economy
- Balanced growth of international trade
- International co-operation
In Particular: - Development of resources and orderly, safe and, rational management
- Participation of all states in all opportunities, avoiding monopolization
- Support of developing countries
- Efficient and reasonable involvement in the mineral market
- Development of the common heritage of mankind
PRODUCTION POLICY, ARTICLE 151
Principles of Policy
- Growth, efficiency, and stability of mineral market
- Prices remunerative for producer
- Prices fair for consumer
External Policy of Authority
- Act through fora which include producers and consumers
- Participate in commodity conferences,
Internal Policy of Authority for Interim Period (Paragraph 3)
-Establish annual production ceiling based on nickel consumption (Paragraph 4) for the exploitation of polymetallic nodules
-Issue for each operator production authorization (Paragraph 2) for no more than 46,500 metric tons of nickel per year (Subparagraph 6(b))
-May limit production of minerals other than those found in polymetallic nodules (Paragraph 9)
-Take measures to counteract adverse effects for developing producer states (Paragraph 10)
SYSTEM OF, EXPLORATION AND EXPLOITATION, ARTICLE 153
-The Authority is to organize, carry out, and control activities
-The Authority is to issue rules, regulations, and procedures to this effect (Annex III, Article 17)
-Activities are to be carried out in accordance with a formal written plan of work approved by the Council (Article 162, Subparagraph 2(j)) (and a production authorization (151, 2; 165, 2(n)) by
-the Enterprise, the organ of the Authority (Article 170; Annexes III and IV)
-(a) states parties, (b) state enterprises, (c) natural persons, (d) juridical persons who meet the requirements of Part XI (Art. 153) and Annex III (Art 3-7)
PERIODIC REVIEW AND REVIEW CONFERENCE, ARTICLES 154-155
-Periodic review every five years by Assembly to improve the manner of practice of the regime of the Area
-Review Conference fifteen years after beginning of commercial production. The Conference is to develop the system and adopt amendments by means of consensus (Article 314)
THE SEA-BED AUTHORITY
Section: Part XI, Articles 133-191
The Convention provides for the establishment of the International Sea-Bed Authority at the time the Convention goes into effect. As this date was not known at the time of the conclusion of the Conference, it was decided to establish a Preparatory Commission to make the necessary arrangements for the commencement of the functions of the Authority. The Commission, which was established in December 1982, is to remain in existence until the conclusion of the first session of the Sea-Bed Authority Assembly.
The Authority thus established has international legal personality and such legal capacity as may be necessary for the exercise of its functions and the fulfillment of its purposes. The Authority and certain persons connected with it enjoy diplomatic status in the performance of their duties. Members of the Authority are those states and entities which are "states parties." The Authority is based on the principle of the sovereign equality of all its members and is the organization through which the States Parties organize and control activities in the Area with the view of administering the resources for the benefit of mankind as a whole, on whose behalf the Authority is to act.
The long-term goal is for the Sea-Bed Authority to become self-supporting. Until that time, the Authority is to receive contributions from its members, the amount of which is to be fixed in accordance with the regular budget of the United Nations. Further funds necessary for operation are to come from activities in the Area, i.e., from royalties paid by operators in the Area, from payments by the Enterprise, or from coastal states for exploration of the outer shelf. The Authority may also raise money by other means, particularly in the initial phase. It also has the right to borrow funds, for which the States Parties are not liable.
The Convention establishes four organs to enable the Authority to fulfil its tasks, three of which are the Assembly, the Council, and the Secretariat. The fourth organ established by the Convention is the Enterprise, through which the Authority carries out activities in the Area directly in accordance with a formal written plan of work as well as transporting, processing, and marketing minerals recovered from the Area. Further subsidiary organs may be established by the Authority as necessary. Except for the Enterprise (which enjoys a special status), these organs act through the Authority. The Authority is the body which concludes contracts with mining operators and which is liable for damage caused by wrongful acts or omissions by the organization or its staff. While actions against the Authority are to be submitted to the Sea-Bed Disputes Chamber certain violations by staff members are considered by a special tribunal of the Authority.
SEA-BED AUTHORITY
Section: Part XI, Articles 133-191
Articles 171-175
SEAT: JAMAICA (Article 156, Paragraph 4)
OTHER LOCATIONS: Yes, for regional centres and offices (Article 156, Paragraph 5)
MEMBERS: All States Parties and those bodies which are entitled to ratify or accede to the Convention (Article 305, Subparagraphs l(a-f); Articles 306-307)
SUSPENSION OF RIGHTS FOR STATE PARTIES:
-Voting rights: State Party in arrears of payment of contribution (Article 184)
-Exercise of rights and privileges: Gross and persistent violations of Part XI, The Area (Article 185)
-State parties which have transferred rights to an international organization may not exercise themselves rights transferred (Annex IX)
OBSERVERS: Those observers of the Conference who have signed the final act of the Conference (Article 156, Paragraph 3); African National Congress, Netherlands Antilles, Palestine Liberation Organization, Pan Africanist Congress of Azania, South West Africa People's Organization.
