04

STATUS OF
CONTRACTS FOREXPLORATION IN
THE AREA

Photo: BGR

78

INTERNATIONAL SEABED AUTHORITYSECRETARY-GENERAL ANNUAL REPORT 2023

79

Who is exploring where for which resources?

PMN

CFC

Northwest Pacific Ocean
Beijing Pioneer Hi-Tech Development Corporation
COMRA (China)
Government of Korea
JOGMEC (Japan)
Ministry of Natural Resources and Environmentof the Russian Federation

Indian Ocean

Government of India

Indian Ocean
PMS

BGR (Germany)
Government of India
Government of Korea
COMRA (China)

The areas explored are in the CCZ, theIndian Ocean, the Mid-Atlantic Ridge andthe Northwest Pacific Ocean.
Figure 11. Map of regions explored for mineral resources in the Area

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INTERNATIONAL SEABED AUTHORITY

PMNCCZBGR (Germany)
BMJ (Jamaica)
CIIC (Cook Islands)
CMC (China)
COMRA (China)
DORD (Japan)

GSR (Belgium)
Government of Korea
Ifremer (France)
IOM (Bulgaria, Cuba,Czech Republic,
Poland, Russian Federation, Slovakia)
Marawa (Kiribati)

NORI (Nauru)
OMS (Singapore)
TOML (Tonga)
UKSRL (UK)
Yuzhmorgeologiya(Russian Federation)

PMN

Mid-Atlantic Ridge
PMS

Government of Poland
Government of the Russian Federation
Ifremer (France)

Polymetallic nodules (PMN)

Polymetallic sulphides (PMS)

Cobalt-rich ferromanganesecrusts (CFC)

19 contracts

7 contracts

4 contracts

SECRETARY-GENERAL ANNUAL REPORT 2023

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Status of contracts for exploration in the Area
ISA has issued 30 contracts to 21 contractors forthe exploration for three types of mineral resourcesin the Area: polymetallic nodules (PMN), polymetallicsulphides (PMS) and cobalt-rich ferromanganesecrusts (CFC) (Figure 11). Contracts are granted
for an initial period of 15 years (Figure 13). States
sponsoring these contracts include nine developingStates and six small island developing States (CookIslands, Jamaica, Kiribati, Nauru, Singapore and Tonga)(Figure 12). Exploration activities consist primarily ofgeological studies, mineral resources assessment andenvironmental surveys and sampling and have very
limited or no environmental impact. Other activities
include developing and testing mining technology andmineral processing techniques.

Russian Federation
2001
2001
2012
2015

Czech Republic

2001 As part of IOM

Poland2001
2018

Germany
2006
2015

BGR
BGR

JSC Yuzhmorgeologiya
As part of IOM
Government
Government

Japan
2001
2014

As part of IOM
Government

DORDJOGMECBelgium

Republic of Korea

2013 GSR

2001
2014
2018

United Kingdom
France2001
2014

2013
2016
Ifremer
Ifremer

UKSR
UKSR

Slovak RepublicChina

2001 As part of IOM

Cuba
2001

2001 2011 2014 COMRA
2017 CMC
2019 Beijing Pioneer Hi-Tech
Development Corporation

Bulgaria

2001 As part of IOM

As part of IOM

SingaporeJamaica2015 OMS

2021 Blue Minerals Jamaica

India
2002
2016

Government
Government

Nauru

2011 NORI

Kiribati
2015 MARAWA

Tonga

2012 TOML

Developing States engagedin activities in the Area

Polymetallic nodules

Polymetallic sulphides

Figure 12. ISA exploration contractors and sponsoring States

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INTERNATIONAL SEABED AUTHORITY

Government
Government
Government

Cook Islands
2016 CIIC

Cobalt-rich ferromanganese crusts

LEGEND

20countries

CONTRACTOR

India

Government
Government

FranceIfremer
Ifremer
DORD
JOGMECJapan

RussianFederation

PolandCzech
Republic

contracts

1990

1995

2000

2005

2010

IOM

PMN
PMS

contractors

2015

2020

15 YEARS

2025

EXTENSION

EXTENSION

15 YEARS

15 YEARS

EXTENSION

EXTENSION

EXTENSION

EXTENSION

EXTENSION

EXTENSION

15 YEARS

15 YEARS
15 YEARS

15 YEARS
15 YEARS

MNRE

COMRA
COMRA
COMRA
CMC
Beijing Pioneer

China

Bulgaria Cuba

JSC Yuzhmorgeologiya
Government

1985

PMN: Pioneer Investor Regime

21CFC

UNCLOS REGIMEPIONEERINVESTOR’S REGIMECOUNTRY

3015 YEARS

15 YEARS

EXTENSION

EXTENSION

15 YEARS
15 YEARS
15 YEARS
15 YEARS

15 YEARS

EXTENSION

EXTENSION

EXTENSION

EXTENSION

20302035

TOTAL YEARSOF EXPLORATIONUNTIL 2023

36736936936118331296432

Russian Slovakia
Federation

Korea

Government
Government

15 YEARS
15 YEARS

Government

Germany

BGR
BGR

Nauru

NORI

Tonga

TOML

Belgium

GSR

United Kingdom

UKSR
UKSR

Kiribati

MarawaSingapore

OMS

Cook Islands

CIIC

PolandGovernment

Jamaica

BMJ Ltd.

15 YEARS

EXTENSION

15 YEARS
15 YEARS29951781215 YEARS

1115 YEARS

1015 YEARS

10715 YEARS
15 YEARS

15 YEARS

815 YEARS

8715 YEARS

15 YEARS

15 YEARS

52Figure 13. Exploration of the Area in figures

SECRETARY-GENERAL ANNUAL REPORT 2023

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Photo: TMC

Compliance assurance andregulatory management
Under UNCLOS, Article 153(4), ISA is required to exercise
such control over activities in the Area as is necessaryfor securing compliance with the relevant provisionsof UNCLOS, Part XI, and the related annexes, the 1994
Agreement, the rules, regulations and procedures of ISA
and approved plans of work for exploration.
The Secretariat’s Compliance Assurance and Regulatory
Management Unit (CARMU) was established in 2022 as
the successor to the Contract Management Unit to act
as the central administrative point of contact between
contractors, sponsoring States and the other organsof ISA. It promotes communication, coordination andcollaboration among them. The primary functions ofCARMU, under High-level action 9.3.2, are to develop
clear, open and cost-effective working practices andprocedures to ensure that the chain of responsibility
and accountability is properly managed in thedevelopment, implementation and enforcement oftechnical, environmental, operational, scientific andsafety regulations and standards for the Area.
In 2022, the Secretariat conducted a risk-based review
of CARMU’s work processes to optimize workflow, roles
and responsibilities within the Secretariat and relevant
stakeholders, and reinforce the Secretary-General’sability to monitor contractor compliance.
CARMU is also responsible for the step-by-stepdevelopment of the seabed mining register to provide forthe safe custody and preservation of all documents, dataand information submitted in connection with applications
for approval of plans of work and contracts for exploration.

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INTERNATIONAL SEABED AUTHORITY

A critical outcome of this exercise will be the generation of
improved visual tools on contracts undertaken in the Area
that promote and increase transparency.

Monitoring of exploration activities
Annual reports
Under the exploration regulations, contractors arerequired to submit annual reports to the SecretaryGeneral in which they report on the progress ofexploration activities carried out against the approved
plan of work for exploration.
The annual reports also provide ISA with critical dataand information, including environmental baseline data,
which may be used to evaluate, analyze and assess thepotential environmental impacts of future exploitation
activities and inform the development of rules,
regulations and procedures pertaining to activities in theArea. All non-confidential information that contractors
provide, including all environmental data, is available tothe public in the DeepData database.
The LTC reviews and evaluates the annual reports andthe exploration work carried out by contractors eachyear. To support the LTC, the scientific and technicalstaff of the Secretariat conducts a preliminary
evaluation of the annual reports, highlighting areas towhich the LTC should give additional attention. Thisincludes a review of the integrity and quality of datasubmitted by contractors. The results of the LTC’s
evaluation are sent to each contractor through theSecretary-General.

Periodic reviews
The exploration regulations also require each contractor
and the Secretary-General to jointly undertake a periodic
review of the implementation of the plan of work for
exploration at intervals of five years. The periodic review
process includes the submission of a comprehensive
five-year report by the contractor, evaluation of thereport by the Secretariat and review by the LTC of theoutcomes of the programme of activities. Among otherthings, the review process produces an agreement
between the Secretary-General and the contractor ona programme of activities to be implemented over thenext five-year period of the contract, consistent with theoverall plan of work for exploration.
Four periodic reviews were completed in 2022 in respectof the contracts for exploration with the Governmentof India (PMN), Nauru Ocean Resources Inc. (NORI)(PMN), Cook Islands Investment Corporation (PMN)and Tonga Offshore Mining Ltd. (PMN).
On 31 August 2022, the Ministry of Natural Resources
and Environment of the Russian Federation submitted
its periodic review report in respect of its contractfor exploration for PMS. The report is undergoingevaluation. The periodic review process is anticipatedto be completed by July 2023.
On 18 November 2022, UK Seabed Resources Ltd.
submitted a draft of its second periodic review reportin respect of its first contract for exploration forPMN (2013). The report is under evaluation, with an
anticipated completion date of July 2023.

Supervisory inspections
During the reporting period, CARMU conducted twosupervisory inspections of contractors’ exploration
activities in the Area for the first time.
The first inspection targeted the test campaign carriedout by NORI for the development of its PMN collector
system components in its contract area in the CCZ.
The test campaign took place between 10 Septemberand 15 November 2022. CARMU undertook inspection
activities at various times between 23 June 2022 and20 January 2023. The inspection activities included
meetings with the contractor and three separate visitsonboard the two vessels involved in the campaign.
Two observations in the form of suggestions forimprovement were identified in the inspection report,
which is available on the ISA website.54
As a result of the inspection, CARMU also investigatedan event on board NORI’s campaign vessel, the Hidden

Gem, on 12 October 2022, involving a temporary
overflow of water during the production ramp-up
sequence of the collector test. The investigation did
not identify any non-compliances on the part of thecontractor. Based on internal and external assessments
supported by external scientific expert reviews, it
concluded that the overflow did not cause serious harmto the marine environment. The investigation report isavailable on the ISA website.55
The second inspection carried out in 2022 followed thecompletion of the first scientific research cruise by theGovernment of Poland under its contract for exploration
for PMS on the Mid-Atlantic Ridge. The cruise took
place between 13 August and 19 September 2022. It
identified one observation in the form of a suggestion
for improvement. The inspection report was sharedwith the contractor and is available on the ISA website.56

Extension of exploration contracts
Acting on the recommendation of the LTC, during its
26th and 27th sessions, the Council approved eight
applications for a five-year extension of contracts for
exploration for PMN (Figure 13). Agreements weresigned subsequently signed during the reporting
period with seven contractors: Interoceanmetal
Joint Organization (IOM), Deep Ocean Resources
Development Co. Ltd. (DORD), the Federal Institutefor Geosciences and Natural Resources of the Federal
Republic of Germany (BGR), the Government of India,
the Government of the Republic of Korea, China
Ocean Mineral Resources Research and Development
Association (COMRA) and Institut français de recherche
pour l’exploitation de la mer (Ifremer). The Secretariat isworking closely with JSC Yuzhmorgeologiya to finalize
and sign the extension agreement.

54

ISA. 2023. CARMU Inspection Report 01/2023. Contractor: Nauru Ocean Resources Inc. Doc. No: INSP/2023/NRU/001. Available at: https://www.isa.org.jm/wp-content/uploads/2023/02/ISA_inspection_report_NORI_mining_collector_system_test.pdf.

55

ISA. 2023. CARMU Investigation Report 01/2023. Contractor: Nauru Ocean Resources Inc. Doc. No: INV/2023/NRU/001/Supp.1. Available at:https://www.isa.org.jm/wp-content/uploads/2023/05/NORI-Investigation-report-27.04.23.pdf.

56

ISA. 2023. CARMU Inspection Report 02/2023 Contractor: Government of Poland Doc.No.: INSP/2023/POL/002, Available at: https://www.isa.
org.jm/wp-content/uploads/2023/03/ISA-Inspection-Report-Government-of-Poland-Mar2023.pdf.

SECRETARY-GENERAL ANNUAL REPORT 2023

85

Relinquishment
In the case of contracts for exploration for PMS andCFC, contractors have an obligation to relinquish partof the original exploration area at periodic intervals.
Relinquished areas revert to the Area.

These obligations are stated in Regulation 27 of theRegulations on prospecting and exploration for PMS inthe Area (ISBA/16/A/12/Rev.1, Annex) and Regulation
27 of the Regulations on prospecting and exploration
for CFC in the Area (ISBA/18/A/11, Annex). To date, thefollowing relinquishments have been made (Table 5):

Table 5. Relinquished parts of contract areas for PMS and CFC that have returned to the AreaPMS

CFCContractor

1st relinquishment of 50% of original area
(due by year 8)

2nd relinquishment of 75% of original
area (due by year 10)

COMRA

Completed

Completed

Russian Federation

Completed

Completed

Republic of Korea

CompletedDeferred to 31 Dec 2026

Ifremer

Deferred to 18 Nov 2023

Deferred to 18 Nov 2025

BGR

Deferred to 6 May 2024

Deferred to 6 May 2026

Govt of India

26 Sep 2024

26 Sep 2026

Govt of Poland

12 Feb 2026

12 Feb 2028

JOGMEC

Completed

27 Jan 2024

COMRA

Completed

28 Apr 2024

Russian Federation

10 Mar 2023

9 Mar 2025

Republic of Korea

27 Mar 2026

26 Mar 2028

Informal consultation between contractors and the Secretary-General
Since 2017, the Secretary-General has held annual
consultative meetings with contractors to discuss
issues of common interest and share best practices indeep-sea exploration. Considering the commitment totransparency in the execution of activities in the deepsea sector, these meetings also provide an opportunity
to discuss the role of ISA in a global context and engage
the support and cooperation of contractors in theprogrammatic work of ISA.
The 2022 annual consultation took place in Delft,
the Netherlands, from 5 to 7 December 2022, withthe logistical support of Allseas and the Technical
University of Delft. It was attended by 64 representativesof exploration contractors.

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INTERNATIONAL SEABED AUTHORITY

Participants discussed the progress made by theCouncil in advancing the draft regulations on theexploitation of mineral resources in the Area, theimplementation of ISA’s data management strategy
and the use of required templates to submit data toDeepData.
The meeting also addressed the most recent initiatives
implemented under the ISA MSR Action Plan, thepossible creation of buffer zones around sulphideoccurrences as part of REMPs and ways to enhance
the process for environmental impact assessments
further. The next annual consultation is expected totake place in October 2023 and will be hosted by KIOST(Republic of Korea).

Photo: TMC

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