《THE LEGAL REGIME FOR DEEP SEABED MINING UNDER THE LAW OF THE SEA CONVENTION》

Preface9

Chapter ⅠOverview11

1.Technical and Economic Data Regarding Deep Seabed Mining11

1.1.Location and Economic Significance of Manganese Nodule Deposits11

1.2.Effects of Seabed Production on Metal Markets and Land Producers11

1.3.The Interests of the Federal Republic of Germany16

1.3.1.Interests in Natural Resources and Economic Policy Concerns16

1.3.2.Deep Seabed Mining Activities by German Industry18

1.4.Seabed Mining Consortia and State of Technological Development20

1.5.Commercial Profitability of Deep Seabed Mining23

2.Legal Order for Seabed Natural Resources26

2.1.Legal Status of the International Seabed Under Customary International Law26

2.2.National Legislation by Industrialized States29

2.3.The Convention on the Law of the Sea31

Chapter ⅡDirect Access By Investors to the Mineral Resources of the Seabed37

1.Organization and Competence of the International Seabed Authority37

1.1.Mandate of the Seabed Authority37

1.2.Structure of the Authority38

1.2.1.The Organs of the Authority38

1.2.2.Composition of the Council39

1.2.3.Voting Procedure in the Council42

1.2.3.1.Statement of the Issue42

1.2.3.2.Decision-Making Procedure Under the Convention42

1.2.3.3.Conclusion44

1.3.Division of Competence Between Assembly and Council45

1.3.1.Basic Features45

1.3.2.Adoption of Rules,Regulations and Procedures46

1.4.Preparatory Commission and Provisional Investment Protection48

2.Dispute Settlement Under the Convention51

2.1.Sea-Bed Disputes Chamber51

2.1.1.Composition and Jurisdiction of the Chamber51

2.1.2.Applicable Law and Scope of Jurisdiction53

2.1.2.1.Review of Rule-Making53

2.1.2.2.Discretionary Decisions55

2.2.Commercial Arbitration56

2.2.1.Jurisdiction56

2.2.2.Choice of Arbitration Proceedings57

3.The Contract as a Licensing Instrument for Deep Seabed Activities:Licensing Procedure,Substance of the Contract and the Authority's Regulatory Powers59

3.1.Prospecting59

3.2.Application and Licensing Procedures for a Plan of Work(Exploration and Exploitation)60

3.2.1.Membership Requirements60

3.2.2.Applicant Qualifications62

3.2.3.External Barriers to Approval63

3.2.4.Reservation Procedure65

3.3.Decision-Making Procedures in Commission and Council67

3.4.The Grant of the Production Authorization70

3.5.Dispute Settlement72

3.6.Contents of the Contract and the Authority's Regulatory Power75

3.6.1.Contents of the Contract75

3.6.2.Supervision and Sanctions77

3.6.3.Emergency Orders for Environmental Protection79

3.7.Conclusion80

4.The Convention's Fiscal Regime80

4.1.Basis of Calculation of Fees to be Paid to the Authority80

4.2.Basic Elements of the Fiscal Regime83

4.3.Assessment of the Fiscal System84

4.3.1.Single System84

4.3.2.Mixed System84

4.3.2.1.Production Charge85

4.3.2.2.Sharing of Net Proceeds87

4.3.2.3.Quantitative Examination of the Financial Obligations90

4.4.Home State Fiscal Treatment of Payments to the Authority91

4.4.1.Necessity of Fiscal Consideration by the Home State91

4.4.2.Tax Claims by the Authority and one State92

4.4.2.1.Fees Paid to the Authority Treated as Costs92

4.4.2.2.Tax Credit for Fees Paid to the Authority92

4.4.2.3.Exemption of Mining Income94

4.4.3.Tax Claims by the Authority and Several States95

4.4.4.Conclusion97

5.Transfer of Technology96

5.1.Statement of Issues96

5.2.Duty to Disclose Information(Annex Ⅲ Art.5 para.1 and 2)98

5.3.Transfer of Technology Owned by the Contractor(An.5 para.3(a))98

5.3.1.Basic Elements99

5.3.2.Conditions of Transfer101

5.3.3.Dispute Settlement305

5.4.Transfer of Technology Owned by Third Parties106

5.4.1.Art.5 para.3(b)106

5.4.2.Art.5 para.3(c)109

5.4.3.Art.5 para.3(d)111

5.5.Training of Personnel in Compliance with Annex III Art.15111

5.6.Transfer of Technology to Developing Countries112

5.7.Transfer of Processing Technology113

5.8.Assessment114

6.Natural Resource Policy Powers of the International Seabed Authority116

6.1.Participation in Commodity Agreements116

6.2.Quota System for Deep Seabed Production118

6.3.Compensation Payments and Economic Adjustment Assistance for Developing Country Producers122

7.Security of Contract Tenure and the Amendability of the Convention123

7.1.Security of Tenure and Term of the Contract123

7.1.1.Substance of Security of Tenure125

7.1.2.Term of Contract126

7.2.Amendments to the Convention127

7.2.1.Review Conference127

7.2.2.Amendment Procedure131

Chapter ⅢThe International Sea-Bed Authority as an Economic Entity132

1.Mandate and Legal Status of the Enterprise132

1.1.Mandate132

1.2.Legal Status and Organization133

1.2.1.Legal Capacity,Immunities and Privileges133

1.2.2.Financing134

1.2.3.Payments to the Authority135

1.2.4.Organization and Control136

1.3.Goals and Business Principles140

1.3.1.Objectives Set by the Convention140

1.3.2.Enforcement of Convention Provisions141

1.4.Scenario:Deciding on the Site for a Processing Plant143

1.4.1.Factual Background143

1.4.2.Alternatives for Action144

1.4.3.The Substantive Law146

1.5.The Competitive Position of the Enterprise in the Parallel System147

2.Models for Cooperation between the Enterprise and Investors149

2.1.Underlying Principles149

2.1.1.Introduction and Definitions149

2.1.2.Cooperation Agreements in the Convention151

2.1.3.Advantages of Cooperation Agreements-Expectations from the Perspectives of the Enterprise and the Investor153

2.1.3.1.Position of the Enterprise153

2.1.3.2.Position of the Investor156

2.2.Contractual Cooperation157

2.2.1."Work contract"157

2.2.2."Service contract" and "production sharing"158

2.2.3.Management Contract161

2.2.4.Conclusion163

2.3.Corporate Cooperation163

2.3.1.Regulatory Problems and Conditions of Success in a Joint Venture163

2.3.2.Capital Participation and Project Control166

2.3.2.1.Investor Majority166

2.3.2.2.Equal Capital Ownership167

2.3.2.3.Investor Minority170

2.3.2.4.Diversification of Steering Instruments and of Decision-Making Responsibilities as the Central Task in Drafting172

2.3.3.Conclusion and Outlook174

Summary and Conclusions of the Study176

Appendix 1:Effects of the Fiscal Regime in Annex HI,Art 13 para.6 of the Convention181

Appendix 2:Models of Tax Treatment by Home State of Payments Made to the Authority185

Bibliography189

Index206