Green Economy in a Blue World-Full Report

1 Introduction: Marine mineral resources potentially supporting a Green Economy We examine the factors driving the interest in deep-sea mineral extraction and look at the possible challenges and opportunities related to this new industry. We also look at the financial instruments and other factors which need to be developed to ensure social, environmental and economic equity from resource revenue. Finally, we discuss the policy implications of deep-sea mining and the attributes of good regulatory frameworks. In the past, mainstream policy-making has tended to treat thematic areas such as fiscal policy, environmental sustainability, natural resource extraction, trade and social impacts separately. The aim of this chapter is to examine a more integrated framework for sustainable management of non-living resources which considers ecological and new economic thinking in the planning and regulation of these industries. 1.1 Minerals and society Minerals, and the metals they contain, are an essential component of the modern high- tech world. Global stocks of raw mineral resources continue to dwindle, leading to increased pressures to access new sources and maximize resource efficiency. Despite increased innovation and recycling, continued increase in material consumption, has led industry to seek access to previously unattainable mineral deposits. According to Captain Nemo in Jules Verne’s epic novel Twenty Thousand Leagues Under the Sea , ‘in the depths of the ocean, there are mines of zinc, iron, silver and gold which would be quite easy to exploit’. Though not quite as described by Verne, deep-sea mineral deposits have been scientifically studied for decades in all ocean basins of the world (see Map 2) and recently have received renewed attention from commercial interests. There are three main classes of deep-sea minerals – manganese nodules, manganese crusts and seafloor massive sulphides (SMS) (for a more detailed description see Rona, 2008). Manganese nodules were first discovered lying on the deep ocean floor during the oceanographic expedition of HMS Challenger, 1872-76. Research into their recovery stretches back to the 1970s. The first hydrothermal sulphide systems were discovered on the 1.2 A brief history of deep-sea minerals.

Galapagos Rift in 1977 (Corliss, et al., 1979) and the first expedition devoted solely to the study of manganese crusts occurred in 1981 (Halbach, et al., 1982). Over the last few decades there has been an increase in scientific research into the origin, composition, and distribution of seafloor minerals. Recognizing the economic potential of these mineral occurrences, exploration companies have been mapping and sampling the seafloor across the Pacific region. SMS deposits have been discovered in the Exclusive Economic Zones of several Pacific Island countries (Glasby, 1982 and Hein, et al., 2005). These deposits contain copper, lead and zinc, and some have very significant amounts of gold and silver. Other deposits have manganese nodules and crusts which contain nickel, copper, cobalt, and rare-earth elements (REEs). Particularly high concentrations of REEs have also been documented in muds on the bottom of the northeast Pacific Ocean (Kato, et al., 2011). REEs are used in a variety of high-tech products such as mobile phones (cerium), digital cameras and batteries (lanthanum) (Long, 2011). The refinement of deep-sea mining technology, the continued rise in global demand (hence prices) for metals (UNEP, 2011), the high grades of ores associated with some marine mineral deposits and increased clarity in the legal frameworks governing exploration and extraction rights, have led industry to consider deep-sea mining as a commercially viable prospect. Some states have shown interest in exploiting mineral deposits beyond national jurisdiction. These rarer metals alone may not be commercially viable, but when coupled with downstream production of consumer goods requiring these metals, may provide a market advantage. However, there is a legitimate concern regarding both our understanding of the different ecosystems associated with deep- sea mineral sites, and the economic and social consequences of any development. 2 Challenges and opportunities 2.1 Environmental Challenges There are environmental challenges with any resource development such as mining, logging or fishing. Experience from land-based mining shows that poor environmental management can result in extensive ecosystem destruction and permanent damage to the livelihoods of local communities (Weeramantry, 1992). In considering the development of deep-sea minerals, it is essential to safeguard associated natural capital and resources and to avoid

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