SPC-EU DSM Project Workshop, 6-8 June,

8/6/2019 SPC-EU DSM Project Workshop, 6-8 June,

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COOK ISLANDS PRESENTATION

by Paul Lynch Ll.b/BA. MBALegal Adviser,

Office of the Minister of Minerals & Natural

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The Cook Islands

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Cook Islands- Country reporty eveloping nation, low natural resources, small land

area, infrastructure constraints, large public service.

y

Tourism #1 earnery Large EEZ 2 million km2 of deep ocean, 4-5,000m

y No army or armed Police force or gangs.

y Good education levels, involved and public opinion

and debate,y Low level corruption and criminal offending.

y Environmental concerns re. SBM are great given ourreliance on tourism (clean beaches image).

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Rarotonga- our capital

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SBM History in Cook IslandsExploratory Surveys found High Grade Nodules

y 1970s-Nodules reported by Russian/US researchers

y 1972RV Tangaroa - Rarotongay 1976 RV Ravakai Penrhyn

y 1980 Hakurei Maru south Penrhyn Basin

y 1983Hakurei Maru 2 south Penrhyn Basin

y 1985 1990 Hakurei Maru 2 north Penrhyn Basin

y 1990-1995 - 1 mill km2 south EEZ

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Cook Islands NodulesHigh abundance (42-47 kg/m2)

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Towards 2012.y Cook Islands have been awaiting advances in

Technology to mine at depth

y Little progress for years.

BUT NOW.

yWith recent technological advances and interest

in SBM

y The Cook Islands government has become activeagain in the area of SBM

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SBM Policy of the Cook Islandsy A comprehensive national SBM Policyhas been drafted

and taken through consultations

y The SBM Policy has been adopted by both the former andnew governments

y The SBM Policy provides y awritten declaration of the principles that will guide the

Government of the Cook Islands in the management of SBM.

y the foundation for the comprehensive regulatoryframework to be established to ensure wise management ofthe SBM for the benefit of present and future generations ofCook Islanders

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SBM Act 2009 of the Cook Islandsy The centerpiece of the regulatory framework is a new and

comprehensive law to govern SBM activity in the CookIslands;

y Contains provisions to govern all rights, obligations andinterests in SBM in the Cook Islands;

y Reflects international best practices concerning in theextractive industries (mining and petroleum);

y Contains provisions that reflect the unique elements ofSBM activity;

y Carefully tailored to complement existing laws in CookIslands.

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SBM Institutional arrangementsy The Ministerwill be responsible for the implementation

of the new law

y A National Seabed Minerals Authoritywill be created,

with day-to-day responsibility for administering the newlaw, including licensing, monitoring, compliance andenforcement;

y A Seabed Minerals Commissioner appointed by theMinister will be the Head of the National Seabed MineralsAuthority;

y A Seabed Minerals Advisory Board will be establishedto provide a formal avenue for community and stakeholderconsultation and participation concerning management ofthe seabed minerals sector.

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SBMModel Agreementy The SBM Act provides a Seabed Mineral Agreement in

accordance with accepted international practice;

y A SBM Agreement would be concluded as a legally-bindingagreement between the Government and a mining company;

y A SBM Agreement would provide an avenue for the Governmentand a mining company to agree to specific undertakings tofacilitate the conduct and financing of SBMctivities;

y A SBM Agreement would be negotiated according to a ModelContract Agreement prescribed under the Act, so as to enhanceand strengthen the negotiating position of Government withforeign SBM mining companies

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Recent Cook Islands dealings with

foreign contractors

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Avatiu Harbour redevelopment

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PROJECT SUMMARY

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$NZ25 million ProjectyBiggest Infrastructure Project in years

yStart May2011

yFinish June 2012

yMcConnell Dowell successful Tenderer


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McConnell Dowell

now in the Cook Islands

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Business Trade and InvestmentBoard

BTIB ROLEBTIB refused McC.D.approval due to lowlocal participation-less than $1 million

Negotiations andcompromise reachedto increase local

participation to $5million

BTIB approval given

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LOCAL PARTICIPATION now

yLocal contractors now used

yLocal welders

yLocal materials and supplies (concrete andfill)

yLocal engineers

yLocal administration staff

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Avatiu Harbour

Project,Rarotonga

COOK ISLANDS

StartedMay2011

with BTIBapproval

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Foreign Investment controlsyBTIB role and MFEM Act controls

yGoverned by the SBM Act 2009

yThe Minister approves SBM investment

yMinister enters SBM Agreement

yIn a process managed by the SBMAuthority

ySBM Authority conducts the negotiations

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COOK ISLANDSFUTUREBENEFITyTo ensure that the Cook Islands

benefits from any entry into theSBM sector

yThe Cook Islands must set and

apply a regime of controls foroperations in the SBM sector

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Our SBM Division currently

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Our SBM future awaits.

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Capacity Building requiredyThe SBM Act 2009 is not in force yet

y

It requires significant Budgetarysupport from the Cook Islandsgovernment and overseas donors

y

Capacity building and training isrequired of Cook Islanders to manageand benefit from this exciting resource

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Meitaki

And

Thank you

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Documents

SPC-EU DSM Project Workshop, 6-8 June,