National Seabed Minerals Policy

Cook Islands National Seabed Minerals Policy Draft date: March 4, 2014 Version: 5 Edit: Cook Islands Seabed Minerals Authority Cook Islands National Seabed Minerals Policy 2014 Contents 1. Background ............................................................................................................................................ 1 1.1 Purpose .......................................................................................................................................... 1 1.2 Scope ............................................................................................................................................. 1 1.3 Definitions ..................................................................................................................................... 1 2. Policy Context ........................................................................................................................................ 1 3. Vision ..................................................................................................................................................... 3 4. Challenges and Considerations ............................................................................................................. 3 5. Seabed Minerals Policy.......................................................................................................................... 4 5.1 Overview of Policy Objectives ....................................................................................................... 4 5.2 Administration of SBM Activities in cooperation with the community, within Government and across the region ....................................................................................................................................... 5 5.3 Sustainable environmental management ..................................................................................... 6 5.4 Minimisation of social impacts from SBM Activities ..................................................................... 8 5.5 Offering internationally competitive investment and fiscal conditions to attract investors while safeguarding SBM Revenues for the nation .............................................................................................. 9 5.6 Sound revenue management practices, and other social measures, that benefit current and future generations ................................................................................................................................... 11 5.7 Maximise benefits of Cook Islands SBM Resources .................................................................... 13 5.8 Sound regulatory framework – national jurisdiction .................................................................. 13 5.9 Sound regulatory framework – The Area .................................................................................... 15 5.10 Maximising the benefits of MSR ................................................................................................. 16 6. Role & Responsibilities ........................................................................................................................ 17 7. Policy effectiveness ............................................................................................................................. 19 8. Appendix - Glossary ............................................................................................................................. 20 Cook Islands National Seabed Minerals Policy 2014 1 1. Background The Cook Islands is a small, developing Pacific Islands nation that is increasingly viewing itself as a “large ocean state”. Like many Pacific Islands nations, the Cook Islands has limited opportunities for sustainable economic growth and diversification. One of our greatest natural resources has always been our ocean. To this end, the NSDP strategically focuses on developing our marine resources including those located on the Continental Shelf. The people of the Cook Islands are collectively the resource owners of all marine resources within our EEZ 1 , which are managed by Government for the benefit of our people, now and for generations to come. 1.1 Purpose The principal purpose of this policy is to establish the rationale and vision for high level policies that will guide the planning and implementation of our Government’s sustainable management of the SBM Resources under the control of the Cook Islands and to enable the wise regulation of SBM Activities. The policy states our Government’s position on the implementation of key aspects of the legislative scheme for SBM Activities set out in the SBM Act, Environment Act, Permits and Consents Regulations, and Tax Act. It is the expectation of our Government that this document will assist: • the Cook Islands community to engage with our Government to seek to ensure that SBM Activities are managed for the greatest national benefit; • the private sector to make informed decisions about investing or participating in SBM Activities; and • to continue to build stakeholder confidence in our Government’s management of SBM Activities. 1.2 Scope This Policy covers the regulation and management of SBM Activities both: • within national jurisdiction (the seabed of the Cook Islands Continental Shelf); and • in ‘The Area’: any parts of the global seabed that do not fall within a country’s national jurisdiction but in which any signatory State to UNCLOS, including the Cook Islands may ‘sponsor’, and thereby regulate and control SBM Activities by companies. 1.3 Definitions Definitions for this policy are set out in section 8. Defined terms are printed in bold text. 2. Policy Context Forty years of ocean survey work suggests as much as 10 billion tonnes 2 of mineral rich manganese nodules are spread over some 750,000 square kilometres of Cook Islands Continental Shelf. This 1 Approximately 1.98 million km 2 Cook Islands National Seabed Minerals Policy 2014 2 SBM Resource offers a significant opportunity for the long term sustainable economic and social development of the Cook Islands. The NSDP states the objective: “... to ensure that we wisely utilise our seabed mineral resources for economic development, maximise the long term benefits from money generated, while minimising the impacts to the environment caused by extraction.” The NSDP also recognises the critical need to conserve the ecosystems of the ocean in order to safeguard Cook Islands culture and to promote higher quality of life for Cook Islanders: “any activities in our oceans must be conducted in a sustainable manner underpinned by the principles of precaution, conservation and effective management, and shared responsibility”. This theme of the NSDP is addressed by the environmental management strategies in the NESAF. The NESAF offers guidance and direction for achieving sustainable social and economic progress for the Cook Islands through the wise management of natural resources and the environment. This policy takes account of relevant objectives and goals of the NSDP and NESAF. Beyond national policy, the legal framework establishing the rights and obligations of the Cook Islands with respect to the exploitation of SBM Resources is set out in UNCLOS. Under UNCLOS i , the Cook Islands enjoys exclusive rights to utilise its SBM Resources within its EEZ subject to compliance with UNCLOS requirements including in relation to protection of the marine environment (see section 5.35.3). These rights and obligations are reflected in a legislative scheme to manage Cook Islands SBM Activities. Legislative scheme for SBM Activities  SBM Act ii : establishes the national framework for SBM Activities, including in relation to the release of areas of seabed for SBM Activities, controls for the issue and regulation of Titles, institutional arrangements for administration of the scheme including monitoring and enforcement powers, and Government accountability measures. Administered principally by the Authority.  Permits and Consents Regulations: sets out requirements for EIAs and environmental permits, ongoing monitoring and reporting requirements, mine closure obligations and enforcement powers in respect of environmental issues relevant to SBM Activities. Administered by the NES.  Tax Act: provides key elements of the fiscal scheme applicable to SBM Activities, including application of company income tax, a resources rent tax, tax collection mechanisms and measures for reducing tax leakage. Administered by MFEM.  Royalties Regulations: requires payment of royalties on mined SBM Resources, administered by MFEM. The roles and responsibilities of institutions that oversee SBM Activities are outlined in section 6. 2 Note that this is an estimate of the in-ground resource, not a recoverable estimate. A recoverable estimate will only be known after considerable exploration including geological, environmental, processing, mining and economic studies are completed. If only 10% of that resource can be recovered it will be one of the largest mineral deposits ever discovered. It is a world class mineral deposit Cook Islands National Seabed Minerals Policy 2014 3 Our Government is preparing legislation for a SWF consistent with section 5.60 of this policy. 3. Vision “To provide for the wise regulation and management of SBM Resources under the jurisdiction of the Cook Islands for the benefit of present and future generations.” 4. Challenges and Considerations The following challenges potentially impact the management of SBM Activities:  No deep sea mining currently taking place So far, only deep sea exploration in The Area and in a limited number of other countries is taking place. The SBM sector is still in its developmental, frontier stage. There are many unknowns and concerns that need to be carefully addressed if this SBM industry is to progress.  Management of health, cultural and other social risks Other developing nations generating significant revenues from extractive industries have experienced a range of social challenges. The trigger for these challenges varies and includes the impacts of environmental degradation, the rapid influx of money into the local economy and the presence of larger numbers of returning nationals and foreign nationals in the community over the medium to long term.  Lack of seabed data The SBM sector is an emerging industry, and there is still limited data currently available on the deep seabed and associated environment at the depths that SBM Activities are expected to occur on the Cook Islands Continental Shelf. Our Government also expects this to be the case for seabed in The Area for which the Cook Islands becomes a sponsoring state. The lack of data may complicate decisions on the necessary initial investment, technology, risks, impacts, environmental assessments and mitigation measures. The source of new data about the Cook Islands’ SBM Resources and the associated environment, which is required to assist Government decisions about SBM Activities, is likely only to come from private sector entities (i.e. companies given Titles by the Government to conduct prospecting and exploration on the Cook Islands’ Continental Shelf), given the high-cost of marine scientific research in the deep oceans.  Environment protection It remains a critical priority of our Government that SBM Activities is carried out in manner that does not lead to significant impact on marine eco-systems and is consistent with internationally accepted rules, standards, principles and practices and care for the environment (under UNCLOS and other relevant conventions, treaties and agreements). A lack of data (see above) may compromise effective environmental management, while monitoring and enforcement activities may be complicated by the remoteness of SBM Activities, in terms of the distance of both: surface Cook Islands National Seabed Minerals Policy 2014 4 ships from shore; and mining activities from the surface. The collection and review of data from exploration activities is expected to assist in overcoming the current lack of information and understanding of issues related to SBM Activities.  Government capacity to administer the legislative scheme Our small population, limited national budget, geographical remoteness and the further remoteness of SBM Activities from our islands challenge our ability to provide sufficient numbers of suitably qualified, trained and experienced personnel to the institutions responsible for the licensing, environmental, fiscal and safety regulation of SBM Activities. Management of conflict of interest and avoidance of undue influence are also challenges in small Governments. Capacity training of Cook Islands people is essential to allow the Cook Islands to develop and control its own national seabed mineral resources.  Attracting suitable investors The Cook Islands is not the only source of Manganese Nodules or the metals found therein. Investors will only be interested in the Cooks Islands’ SBM Resources if they consider the operating environment to be relatively risk-free, and assess that they can harvest those resources at a profit. The higher the costs of SBM Activities incurred by investors, the lower the profits (and the less attractive as an investment). Factors within the Cook Islands’ Government that may increase the cost to investors of SBM Activities are: regulatory controls, environmental protection measures and the priority to maximise financial return to the nation from finite SBM Resources (i.e. high tax rates and royalties). Outside of the Government’s control are the costs of technology and equipment that reflect the pioneering nature of SBM Activities, the extreme sea depths at which SBM Activities will occur and the market value of minerals and metals. All costs of conducting SBM Activities under Cook Islands jurisdiction affect the international competitiveness of our nation among potential investors, and may impact our capability to attract the highest quality investment. 5. Seabed Minerals Policy 5.1 Overview of Policy Objectives In achieving this vision we outline the following specific policy objectives that are explained in further detail in subsections 5.2 to 5.10. 1. Administration of SBM Activities cooperatively with the community, within our Government and across the region. 2. Sustainable Environmental Management. 3. Minimisation of social impacts from SBM Activities. 4. Offering internationally competitive investment and fiscal conditions to attract potential investors while safeguarding the nation’s earnings from SBM Resources. Cook Islands National Seabed Minerals Policy 2014 5 5. Sound revenue management practices, and other social measures, that benefit current and future generations. 6. Maximising the benefits of Cook Islands SBM Resources. 7. Establishment and administration of a sound regulatory framework – national jurisdiction. 8. Establishment and administration of a sound regulatory framework – The Area. 9. Maximising the benefits of MSR. 5.2 Administration of SBM Activities in cooperation with the community, within Government and across the region Parliament has decreed that the objectives of the SBM Act include to: “promote a co-operative approach to the management of the seabed minerals of the Cook Islands involving government and island communities.” Cooperative administration of SBM Activities by Government agencies, within the allocated responsibility of agencies, maximises the efficiency and efficacy of that administration. Engagement of island communities in the administration of SBM Activities assists to ensure that SBM Activities best serve the national interest and minimises the risk that inadequately-informed decisions are taken by the Government or Title holders, or that the community misunderstands or does not support with our Government’s approach to SBM Activities. The Cook Islands’ SBM Resources can be seen as the common heritage of all citizens, present and future; and the issues around their development are cross-cutting, complex and novel. For this reason Government adopts the position that the entire nation and its people are the “community” affected by SBM Activities and that related decisions are best-handled with participation of all concerned citizens, at the relevant level. We have a commitment to community engagement, including through: • Engagements with the community via the Advisory Board; • Consultations on the various islands, and with various groups (including traditional and political leaders), regarding SBM Activities; • Engagement with international and regional stakeholders and donors; and • Publication of relevant information about SBM Activities, via the media and Authority website. 1. Participatory approach to management of SBM Activities 1.1 We will take all reasonable steps to ensure that the administration of SBM Activities is conducted in participation and consultation with other relevant Government agencies and the Cook Islands community. Cook Islands National Seabed Minerals Policy 2014 6 Measures for a cooperative approach to the management of Cook Islands SBM Activities  The Authority will assess Licence applications in consultation with other relevant agencies, including the NES, and in accordance with the statutory requirement to consult the Advisory Board for recommendations.  The Authority will actively consult with the community on the conduct of SBM Activities, subject to resourcing.  EIA processes, including a public consultation component, will apply for SBM Activities, in accordance with the Environment Act and the SBM Act.  The Government will consult with the community on changes to this policy or to the legislative scheme governing SBM Activities.  Decisions in relation to investment of the SWF are proposed to be taken in consultation with an investment entity to be established by law that will include community members.  SBM Activities will be consistent with the proposed Cook Islands Marine Park. In addition, the Government recognises the benefits that can accrue to regional co-operative measures. In this regard, the Cook Islands are a key founding member of the regional ACP-EU Deep Sea Minerals Project managed in Fiji by SOPAC. Also, the Pacific Islands Regional Ocean Policy encourages the Cook Islands to engage with neighbours to harmonise policies, share information to minimise impacts and to promote joint developments. Among other opportunities, the administration of Pacific region SBM Activities may in the future be undertaken by a regional body that enables the sharing of resources for regulatory activities. Experience in the development and management of SBM Activities may enable the Cook Islands to assist this initiative. 2. Regional cooperative measures 2.1 As appropriate, we will consider and pursue regional cooperative measures that offer short or long term benefits to the development of the Cook Islands SBM sector. 5.3 Sustainable environmental management UNCLOS and general international law, establish standards of environmental protection that apply to SBM Activities. These standards relevantly include: application of the precautionary approach, implementation of due diligence measures for the administration of national laws, adoption of ‘best environmental practice’ and making provision for environmental emergencies. ‘Best environmental practice’ Will change over time but currently includes (in addition to the precautionary approach):  stringent environmental data collection requirements, to enable monitoring of impacts against baseline data and control sites;  application of appropriate requirements to undertake an EIA; Cook Islands National Seabed Minerals Policy 2014 7  adherence to pollutant restrictions, and application of the ‘polluter pays’ principle;  use of ‘best available technology’;  managing environmental issues on the basis of the anticipated effect of activities, rather than the nature of the activities; a lighter response to prospecting than exploration is therefore likely, and exploration rather than exploitation, depending on the circumstances;  considering environmental effects at the broad ecosystem level, rather than (for example) by reference to individual species;  a requirement for persons engaged in SBM Activities to pay financial bonds, held on trust by the Government, to actively discourage (and to cover the costs of clean-up or compensation for) potential environmental damage. The lack of data about the deep seabed and its associated ecosystems presently makes it difficult to assess fully the potential impact of SBM Activities. In particular, SBM Activities on the Cook Islands Continental Shelf is expected to occur at depths between 4,000m and 5,000m. It is Government policy that there is unlikely to be local processing of SBM Resources in the Cook Islands due to a lack of expertise power, personnel and available land. This, and the distance from shore of proposed mining sites, will greatly limit onshore or coastal impacts of SBM Activities. Impacts will occur at harvesting sites of SBM Resources, where possible environmental damage may include significant disturbance to seafloor ecosystems, long term suspended sediments in the water column, and potential flow-on effects for food chains. and may potentially lead to impacts due to increased marine traffic (e.g. barges shipping ore out of the EEZ) The precautionary approach means that the Government cannot use the absence of data to avoid taking protective measures to require the prevention, mitigation, or remedy of any such impacts where cost effective measures are available to do so. 3 Adherence to international standards of environmental protection 3.1 We will comply with applicable principles of international law targeting protection of the environment, including adoption of best environmental practice and application of the precautionary approach. In pursuing this objective, and as appropriate, the NES on behalf of the Government will apply the requirements of established national environmental policy as well as the Environment Act, the Permits and Consents Regulations, and other environment-related legislation (eg the Prevention of Marine Pollution Act 1998). Additional legislative mechanisms will be considered as required. 4 Protection of the environment 4.1 We will seek to ensure that the conservation, protection and management of the marine and coastal environment of the Cook Islands is not unreasonably compromised by SBM Activities through the formulation, enactment and application of environmental laws and regulations reflective of the needs of our ocean and of internationally accepted principles and Cook Islands National Seabed Minerals Policy 2014 8 standards of environmental protection, including the precautionary approach. Best environmental practice measures  This policy will assist Government to determine which parts (and how much) of the seabed to allocate for SBM Activities, and any plans for associated control sites, buffer zones, marine protected areas.  Title holders proposing to engage in SBM Activities must obtain an environmental permit from the NES, and depending on the potential impacts of the exploration techniques to be implemented must conduct an EIA.  Stringent data collection and reporting requirements on Title holders to enable ongoing environmental monitoring by the NES and the Authority.  Application of appropriate impact mitigation measures during SBM Activities.  An on-vessel inspection regime.  Title holders will be obliged to adopt the precautionary approach and to remedy environmental harm on their SBM Activities and mine closure, and will remain responsible for latent environmental damage beyond mine closure.  Heavy penalties for breach, including criminal sanctions and cancellation of Titles. Environmental factors also pose particular risks and challenges to people engaged at sea in SBM Activities, including as a result of the specific tasks of SBM Activities and the remoteness of SBM Activities from medical help. 5 Balancing SBM Activities against the need for appropriate for health and safety standards 5.1 We will pursue a socially acceptable balance between SBM Activities and the need for appropriate health and safety standards, including through internationally accepted standards of health and mining safety to be observed by all SBM Activities participants. 5.4 Minimisation of social impacts from SBM Activities Risks of social impacts from SBM Activities have been extrapolated from the experience in land based, extractive industries, and at different times these concerns have been reflected in some views from the Cook Islands community. The principal concerns and the Government’s responses are: Concern Government position Rapid changes to social balance caused by the sudden influx of SBM Revenues or other economic development The proposed SWF and its controlled, strategic use of funds in the local economy will prevent the destabilising effect of a rapid influx of SBM Revenues. Effects on social structures and ideals The remoteness of SBM Activities, and the Government’s Cook Islands National Seabed Minerals Policy 2014 9 caused by a large influx of returning nationals and foreign nationals position that no processing of SBM Resources will be carried out on Cook Islands territory, means that no substantial increase of foreign nationals on Cook Islands land is expected. Issues relating to returning nationals will need to be addressed in social studies and assessments. Undermining traditional uses of the ocean as a result of damage to the environment The SBM Act prohibits unnecessary interference with specified other uses of the sea, including fishing and sea cables and navigation. The remoteness of SBM Activities from islands means that the Government anticipates no social impact from SBM Activities on coastal areas used in customary practices of people living on islands in the Cook Islands. The Government remains committed to pre-empting and addressing potential social impacts, in open consultation with the community (see section 5.2). Where an EIA shows likely adverse social impacts from proposed SBM Activities, the Government (the Authority or the relevant environment permitting authority) can reject a project or require amendments to avoid or minimise those impacts. 6 Minimisation of social impacts from SBM Activities 6.1 We will prioritise the early identification and treatment of risks that could adversely impact our society. 6.2 We will require that Title holders conduct SBM Activities in a socially responsible manner, consistent with the international principles. 6.3 We will require that Title holders develop a participatory and collaborative approach to the planning and development of SBM Activities relating to their Title, taking account the needs of Cook Islanders. 5.5 Offering internationally competitive investment and fiscal conditions to attract investors while safeguarding SBM Revenues for the nation The Government seeks to strike a balance between: • ensuring that SBM Activities maximise SBM Revenues generated by the mining of non renewable SBM Resources that belong to the present and future generations of the Cook Islands, the income from which is both finite and temporary, and; • providing appropriate investment conditions and seek to ensure that investors will make the significant capital outlay for SBM Activities, which represents an emerging and as yet untested industry. 7 Transparent, fair and stable fiscal regime 7.1 We will establish a stable fiscal regime that provides the Cook Islands a fair and equitable share of SBM Revenues while encouraging investment by Cook Islands National Seabed Minerals Policy 2014 10 providing for early payback of capital and a return commensurate with mining industry norms and the risk undertaken. 7.2 We will also encourage investment in SBM Activities by providing for: the transparent and even-handed treatment of investors, their security of rights over areas of SBM Resources, and protection from sovereign risk. Principles of the Cook Islands fiscal regime In order to achieve the Government’s policy objectives, the fiscal regime will:  be internationally competitive;  be progressive, standardised, transparent and (so far as possible) simple and clear, so that investors can predict and plan for all fiscal obligations and so that the Government can administer the fiscal regime efficiently and effectively;  operate so as to increase the nation’s share of profits as the profitability of SBM Activities increase;  enshrine key elements in legislation that: avoids case by case negotiation of fiscal provisions that risks ‘bad deals’ and opportunity for undue influence; offers transparency to the community; and provides stability to the scheme as a whole;  permit offshore transfer of funds from SBM Activities at prevailing international exchange rates;  offer rapid recovery of initial investment outlays and provide adequate cover for debt servicing levels where needed, but will not provide tax incentives for SBM Activities that would otherwise undermine the revenue stream to the nation;  avoid adding significantly to investment costs;  be centrally administered by MFEM to seek to ensure a national view on the distribution of revenues;  safeguard against tax leakage through measures like: thin capitalisation rules (to prevent financing through excessive debt); stronger transfer pricing rules (governing charges between related entities) via an arm’s length rule and rules for determining arm’s length prices; ensuring income from mining activities is treated as Cook Islands source income; ring-fencing mining expenditure to specific projects; applying internationally accepted accounting procedures and robust financial reporting obligations; and ensuring MFEM capacity to efficiently administer the fiscal regime. In addition to the fiscal arrangements, investors will be further protected by:  statutory prohibitions on unlawful obstruction or other interference of SBM Activities; and  security of tenure over Titles issued under the SBM Act and statutory protection against sovereign risk such as the nationalisation of businesses engaged in SBM Activities. Key taxes applicable to SBM Activities  Corporate Income Tax – charged on all non-resident companies at the rate of 28% (Tax Act). Cook Islands National Seabed Minerals Policy 2014 11  Royalties – charged at 3% of the export value of mined SBM Resources (Royalties Regulations).  Additional profits tax – that requires additional tax payments to the nation if extra-ordinary profits are made (Tax Act). 5.6 Sound revenue management practices, and other social measures, that benefit current and future generations The prudent management of SBM Revenues will provide the basis for the long term sustainable economic growth and development of the Cook Islands. This potential is challenged by: potential for SBM Revenues to enter our economy at a level disproportionate to other revenue; price fluctuations; and the finite and exhaustible nature of SBM Resources (and SBM Revenues). Transparency and accountability concerning SBM Revenues will be critical to ensuring long term benefits from SBM Activities. 8 Disclosure of information about SBM Revenues 8.1 We will disclose and disseminate information about SBM Revenues consistent with the laws of the Cook Islands relating to the management of public monies. The experience of other countries is that allowing mineral revenues to enter the local economy has significant adverse impact on inflation and encourages short term spending in preference to long term investment. In order to mitigate this risk, and promote the proper management of SBM Revenues for the benefit of present and future generations of Cook Islanders, the Government will establish a sovereign wealth fund (‘SWF’) consistent with best international practice. Characteristics of the SWF  Established by law and operated on the basis that all SBM Revenues (income taxes, royalties, and resource rents) will be paid directly into the SWF. Administrative fees (eg Licence application fees and annual fees) may be reserved to cover administrative costs and not paid into the SWF.  Requirements for SBM Revenue to be deposited into the SWF, and the conditions in which money may be withdrawn from the SWF, may be entrenched in the Constitution to better protect the integrity of the SWF and to minimise social risk from imprudent use of the SWF.  Best international practise will apply to operation of the SWF, including: independent (external) audit of the SWF; statutory reporting requirements to the public and Parliament that will safeguard effective and transparent governance and accountability; and consultation with an independent body broadly representative of Cook Islands society.  Legislation will provide guidance on the investment of the SWF. An investment strategy for the SWF will be devised by a statutory investment committee. A proposed emphasis on long term Cook Islands National Seabed Minerals Policy 2014 12 offshore investments: (a) will keep SBM Revenues out of the local economy to mitigate inflationary pressure and other risks; (b) offers better security for the SWF; and (c) reflects best international practice. 9 Diligent collection and sound management of SBM Revenues 9.1 We will seek to ensure that revenue is efficiently collected and wisely invested and managed for the public benefit of current and future generations of Cook Islanders consistent with best international practice. A thriving industry for SBM Activities is expected to offer a range of social benefits , in addition to the increased national revenue for the Cook Islands, including alleviation of poverty and improvements to the quality of life in the Cook Islands. Possible socially beneficial programs  Opportunities for private sector and Government training and employment connected with SBM Activities and associated capacity building  Studying, training and other capacity building opportunities for Cook Island nationals in disciplines relevant to SBM Activities (science, law, economics, engineering, environmental management, vessel inspection etc.)Beneficial use of new MSR data emanating from SBM Activities  Economic benefits if Cook Islands ports, and local goods and services are utilised by vessels engaged in SBM Activities.  Sharing of infrastructure The Authority may also make it a condition that Title holders give preference to employing relevantly qualified Cook Islanders and use Cook Islands materials and service providers. Due to the remoteness of SBM Activities from Cook Islands land territory and the likelihood that most operators will never come ashore in the Cook Islands, , the scope for other socially beneficial programs may be limited (compared to, for example, on-land mining where roads and buildings may be constructed by the mining company). Given that the principal benefit of SBM Activities will be SBM Revenues, the Government is aware that requiring Title holders to deliver social benefits may reduce our international competitiveness for investors in SBM Activities. 10 Other socially beneficial programs 10.1 We will pursue opportunities for Cook Islanders to benefit from SBM Activities through relevant education, training and career development and other socially beneficial projects, as appropriate from time to time. Cook Islands National Seabed Minerals Policy 2014 13 5.7 Maximise benefits of Cook Islands SBM Resources The Government has discretion as to whether to pursue the early exploitation of Cook Islands SBM Resources or to delay exploitation. Early exploitation Delayed exploitation Benefits Risks Benefits Risks  Earlier access to SBM Revenues  Technology and environment uncertainty may result in environmental harm or increased costs  Better knowledge of seabed environment and SBM Activities likely to increase certainty and reduce cost of regulatory controls  More competition with other commercially exploitable areas of seabed  Miss out altogether on the opportunity to develop the resource, as only so many projects can go at once  No short term access to SBM Revenues  Take advantage of lack of other sources of SBM Resources  Lower profits (and lower SBM Revenues) due to higher cost of new technology/equipment  Established technology likely to be cheaper, resulting in higher SBM Revenues  Price and demand for target minerals may diminish, making SBM Activities uneconomic or reducing SBM Revenues The Government believes that the risks of early exploitation can be mitigated through: detailed environmental assessments; use of environmental bonds; and a strategy for the release of seabed areas that reserves some high-potential SBM Resources for later exploitation. Early exploitation will seek to ensure that the Cook Islands does not ‘miss the boat’, particularly if other nations release seabed areas that are either more profitable or can be exploited on more advantageous terms. Only so many long term projects can go ahead at any one time. The Government also proposes to sponsor SBM Activities in ‘The Area’ to build Government capacity in the management of SBM Activities. This will assist to ensure that Activities on the Cook Islands seabed is efficient and economically viable – see section 5.9. 11 Maximise benefits of Cook Islands SBM Resources 11.1 We will move to develop our SBM Resources as soon as it is viable, having regard to the environmental issues, the profitability of SBM Activities and the desirability of reserving some high-potential areas for future exploitation. 5.8 Sound regulatory framework – national jurisdiction A brief overview of the legislative scheme for SBM Activities is set out in section 2, while the regulation of environmental and fiscal matters is explained in sections 5.3 and 5.5 respectively. A number of other aspects of SBM Activities are governed by existing legislative schemes, including Cook Islands National Seabed Minerals Policy 2014 14 the schemes in the Marine Transport Act 2008, Employment Relations Act 2012 and Prevention of Marine Pollution Act 1998. The SBM Act adds the regulatory scheme for issues specific to the conduct of SBM Activities and the overall administration of SBM Activities by the Government. Key aspects of regulatory scheme in the SBM Act  Establishment of administrative institutions and other roles – see section 6.  Standardised licensing system for Titles, separately covering prospecting permits, exploration Licences, retention Licences and exploitation Licences.  Process for the release and reservation of ‘blocks’ and the efficient allocation of blocks (through Titles) to bona fide and suitably qualified and experienced applicants. Blocks will be allocated on the basis of tender processes or own-initiative applications, and the diligent application of assessment criteria by the Authority.  Process for entry into Licence agreements by the Minister.  Rights of Title holders that provides for: security of tenure; minimisation of sovereign risk; rights to transfer Titles subject to specified conditions.  Obligations of Title holders including: diligent execution of Titles; conduct of EIAs; mine closure obligations, insurance requirements).  Monitoring/enforcement tools and sanctions for non-compliance such as revocation of Titles.  Provisions for the disclosure of information about SBM Activities, but protecting commercially confidential information.  Transparency measures that require reporting and audit by operators and by the Government, the maintenance of a public register of Titles. Public consultation mechanisms.  Details of the regulatory scheme will be set out in regulations proposed under the SBM Act.  Our government may declare ‘Strategic Reserved Areas’ – being parts of the EZZ of the Cook Islands that may be reserved by the Government as a strategic national SBM asset, or for special SBM arrangements of national benefit to the Cook Islands. Most importantly, the Government is committed to the diligent, predictable and transparent administration of the SBM Act consistent with Government policy. This requires sufficient numbers of suitably qualified, trained and experienced public servants and for agencies to be adequately funded to oversee SBM Activities that occur far from islands. Administrative fees paid under the legislative scheme will assist Government funding. The Government also concedes that the small size of the Cook Islands creates risk that conflicts of interest will arise in the management of SBM Activities. Transparency and accountability mechanisms reflect the critical importance of consistency and accountability in the management of SBM Activities as well as the administration and enforcement of laws without bias or undue influence. Such mechanisms also protect the benefits to the community of SBM Activities and assist to create a regulatory climate that is conducive to investment. Transparency and accountability mechanisms  Proactive publication of information, and consultation mechanisms, as highlighted in section 5.2, above. Cook Islands National Seabed Minerals Policy 2014 15  Audit and reporting obligations in the SBM Act.  Access to Government information provisions of the Official Information Act 2008.  Judicial review of administrative decisions in the inherent jurisdiction of the High Court. Special interest groups have standing to seek such review.  The Advisory Board, which is to be representative of community interests, must be consulted on the management of SBM Activities (see also section 5.2).  Risk of undue influence on decision makers is reduced by measures such as: separation under the SBM Act, of the consideration of applications for Titles by the Authority from the entry into Licence agreements by the Minister; and use of public tender as a key mechanism for awarding exploration Licences. 12 Regulation of SBM Activities 12.1 We will prioritise the adequate resourcing of institutions tasked with authorising, monitoring and regulating SBM Activities. 13 Publication of information on the conduct and management of SBM Activities 13.1 To ensure transparency and accountability, we will publish all information about the conduct of SBM Activities that is not commercially sensitive, as well as key information about the Government’s management of those Activities. 14 Impartial and accountable administration of the legislative scheme 14.1 We will, in the regulation and management of SBM Activities, seek to ensure that appropriate checks and balances safeguard the impartiality of decisions according to law and the accountability of decision makers consistent with the objects of this policy. 5.9 Sound regulatory framework – The Area UNCLOS states that SBM Resources in The Area are ‘the common heritage of mankind’ and exploitation of such Resources is subject to ISA oversight. As a party to UNCLOS, the Cook Islands may apply to the ISA for access to the SBM Resources of The Area, or may sponsor a company to apply. UNCLOS gives preferential access to developing States such as the Cook Islands through a system of reserves sites. The Cook Islands sponsorship of a contractor to undertake SBM Activities in The Area enables the contractor to extract and sell the SBM Resources in exchange for paying fees and royalties to the ISA. The ISA is obliged to share those royalties equitably amongst the global community. Other beneficial contractual arrangements are also possible in the Area. Cook Islands National Seabed Minerals Policy 2014 16 The role of the Cook Islands as sponsor is to seek to ensure the company complies with ISA rules. Consistent with current international law, this requires us to exercise due diligence in our oversight of a company, including in the application of regulatory provisions. The specific regulatory scheme will be similar, but not identical, to the scheme under the SBM Act. The Government will have licence rights over the SBM Resources in The Area and may impose fees, royalties and require a share of future proceeds or profits from the sale of the extracted SBM Resources in return for sponsoring and regulating the SBM Activities. The Government is pursuing options to sponsor SBM Activities in The Area in order to access the fees, royalties and other revenue from such Activities and to build experience and expertise in the management of SBM Activities in the Area that will be highly relevant to the management of SBM Activities on the Cook Islands Continental Shelf. 15 Sponsorship of SBM Activities in The Area 15.1 We will consider and engage in sponsorship of SBM Activities in The Area where this is in the national interest, including on economic grounds or because sponsorship improves the nation’s capability to manage SBM Activities in the Cook Islands consistent with the objects of this policy. 5.10 Maximising the benefits of MSR The Cook Islands has obligations under international law to promote and facilitate marine scientific research (MSR), and to seek to ensure the maximum benefit to the Cook Islands arising from MSR. Benefits of MSR and scientific data arising from SBM Activities  Better information about the distribution, quantity and composition of SBM Resources.  Greater understanding of the deep sea environment that will facilitate the management of environmental issues arising from SBM Activities.  Identification of other marine resources of environmental, cultural or economic value. MSR can be carried out as an incident to SBM Activities or as part of other dedicated MSR or incidental activities. Participants in SBM Activities will be required to provide our Government with MSR and scientific data gathered, subject to confidentiality requirements if necessary. Among other things, such data will assist our Government to administer the scheme for protection of the environment. Title holders are also prohibited from interfering with MSR conducted by other persons. Cook Islands National Seabed Minerals Policy 2014 17 17. Promotion of MSR 17.1 We will give effect to our MSR obligations under international law by maximising Government access to MSR data acquired during SBM Activities and prohibiting Title holders from interfering with MSR by third parties. Since MSR can itself cause environmental degradation, MSR activities will be subject to the environmental management regime under the Environment Act. 6. Role & Responsibilities Overview of Government roles and responsibilities  The Responsible Minister has responsibility for matters with high level political implications, including policy and reporting matters. The Responsible Minister also exercises the final act of entering Licence agreements under the SBM Act.  The Authority is the principal administrative body for SBM Activities, other than in relation to environmental and fiscal matters, subject to Ministerial oversight. The Authority must take Board recommendations into account.  The Commissioner is head of the Authority with specified high level administrative functions.  The Advisory Board is comprised of a range of community representatives and is the official avenue for consultation between Government and the community on matters concerning the regulation and management of the SBM Resources of the Cook Islands  The NES has principal responsibility for environmental issues arising from SBM Activities, particularly in relation to the issue of permits under the Permits and Consents Regulations.  MFEM administers the fiscal arrangements pertaining to SBM Activities.  MFEM has overall responsibility for revenue management.  MOT is responsible for the safety of ‘vessels’ engaged in, or associated with, SBM Activities.  CIIC is the entity through which the Cook Islands can access entitlements under UNCLOS in The Area.  Responsible Minister Under the SBM Act, the Minister responsible for minerals has responsibility for the overall management of the SBM sector and an oversight role under the SBM Act. At the time of publication the Responsible Minister is the Minister of Minerals and Natural Resources. The Minister also holds the statutory power to enter into Licence agreements for the exploration for and exploitation of SBM Resources.  The Cook Islands Seabed Minerals Authority (Authority) The Authority is responsible for the day to day administration of SBM Activities. This includes the processing of applications for Titles under the SBM Act and the issue of Titles, the negotiation of Licence agreements, advising the Government on which areas of seabed should be released for SBM Activities, and the administration of the regulatory scheme that seek to ensures SBM Cook Islands National Seabed Minerals Policy 2014 18 Activities avoid harm to the Cook Islands nation, including its environment. Among other things, the Authority must take into account any recommendations of the Advisory Board in relation to SBM Activities. A fee structure will be established, through transparent regulations, for regulatory services performed by the Authority under the SBM Act. These fees will be fair, internationally benchmarked from time to time and will enable the Government to fund the Authority’s operational costs.  Seabed Minerals Commissioner (Commissioner) The Commissioner is a statutory office created under the SBM Act to lead the Authority. Among other things, the Commissioner is responsible for the appointment of Authority staff and persons authorised to undertake safety related functions under the SBM Act. The Commissioner is also responsible for reporting to the Government on the Authority’s administration of the SBM Act.  Seabed Minerals Advisory Board (Advisory Board) The Advisory Board is an unincorporated body created under the SBM Act to provide a formal avenue for the Authority to consult with the community on the management of SBM Activities. It is empowered to make recommendations to the Authority concerning the grant, renewal, extension and cancellation of Titles and generally in relation to the management of SBM Activities. The Advisory Board’s recommendations to the Authority must also be provided to the Minister for information. Advisory Board members are appointed by the Minister: the Government intends that the Board include: Northern and Southern group representatives; traditional leader representatives (both the House of Ariki and Koutu Nui); a representative of the Religious Advisory Council; representative of environmental interests; and local commercial interests. As a matter of practicality the Advisory Board may not always comprise the full complement of members. Additional members may be appointed by the Minister.  National Environment Service (NES) The NES is responsible for environmental permitting of SBM Activities, and the monitoring and enforcement of environmental laws that apply to SBM Activities. This includes administration of requirements for EIAs to be conducted by persons proposing to undertake SBM Activities. The NES will also play a significant role in research, advocacy and awareness around environmentally sustainable practices for SBM Activities.  Ministry of Finance and Economic Management (MFEM) MFEM is responsible for the administration of Cook Islands tax legislation, including the Tax Act that establishes special fiscal arrangements for SBM Activities. Accordingly, MFEM will collect taxes and royalties from companies engaged in SBM Activities and monitor compliance with the tax and royalty schemes. In addition, MFEM is proposed to administer legislation for the establishment of the SWF into which all taxes and royalties will be paid – see section 5.6. Cook Islands National Seabed Minerals Policy 2014 19  Ministry of Transport Ministry of Transport administers maritime law and is responsible for ensuring that vessels used in connection with SBM Activities comply with national and international laws, including in relation to the safety of maritime navigation.  Exploration and Mining Companies As it is a new industry, there are few exploration and mining companies experienced in SBM Activities and generally it is private sector entities (and some industrialised-State-back mining companies and research institutions) that have the resources and knowhow to undertake SBM Activities. Accordingly, the structure and administration of the scheme for SBM Activities must, consistent with this Policy, balance protective measures against the importance of encouraging investment from such companies.  Individuals and the Public The conduct of SBM Activities and management of revenues from those Activities affects everyone. The inappropriate management of SBM Activities threatens to deter investment, compromises the efficient generation of revenue to the nation, undermines the Government’s intention to avoid harm to the environment and risks the long term benefits that are expected from the SWF. All Cook Islander’s should engage with the Government’s position on SBM Activities to seek to ensure that the SBM Activities are undertaken in the manner that reflects the public interest. 7. Policy effectiveness This Policy is effective from its date of publication in the Official Gazette and is deemed to be the foundation document that informs and assists our Government in its management of the Cook Islands SBM sector. The Government will undertake regular reviews of this Policy as required. Cook Islands National Seabed Minerals Policy 2014 20 8. Appendix - Glossary Acronyms ‘CIIC’- “Cook Islands Investment Corporation.” ‘EEZ’ – “exclusive economic zone.” ‘EIA’ – “environmental and social impact assessment (under the Environment (Permits and Consents) Regulations 2013).” ‘ISA’ – “International Seabed Authority.” ‘MFEM’ – “the Ministry for Finance and Economic Management.” ‘MOT’ – “the Ministry of Transport.” ‘MSR’ – “Marine scientific research.” ‘NSDP’ – “Cook Islands National Sustainable Development Plan 2011-2015.” ‘NES’ – “the National Environment Service of the Cook Islands.” ‘NESAF‘ – “National Environment Strategic Action Framework 2005-2009.” ‘SBM’ –“seabed minerals.” ‘SWF’ – “Sovereign Wealth Fund”. ‘UNCLOS’ – “United Nations Convention on the Law of the Sea, 1982.” Definitions ‘Advisory Board’ – “the Seabed Minerals Advisory Board established under the SBM Act – see section 6.” ‘Authority’ – “the Seabed Minerals Authority established under the SBM Act – see section 6.” ‘The Area’ – “the international area of seabed, which is established by UNCLOS as all ocean-floor that falls outside of any country’s EEZ or Continental Shelf. The SBM Resources of The Area can only be explored or mined under a contract with the ISA. Nations that are bound by UNCLOS (including the Cook Islands), or companies ‘sponsored’ by such nations, are eligible to apply to the ISA for a contract. A company from a developed nation may be sponsored by a developing nation to apply for a licence over a reserved site.” ‘Cook Islands Investment Corporation’ or ‘CIIC’ – “a Cook Islands State Owned Enterprise established pursuant to section 3 of the Cook Islands Investment Corporation Act 1998 (as amended) and has its registered office in Avarua and at the Office of the Minister responsible in the Cook Islands. Commissioner’ – “the Seabed Minerals Commissioner appointed under the SBM Act – see section 6.” ‘Continental Shelf’ – “a submerged portion of land that continues from a country’s coastline under the sea towards the deep ocean floor determined in accordance with UNCLOS. All coastal countries enjoy a 200 nautical mile deemed Continental Shelf as part of the EEZ (subject to negotiation if it runs into a neighbouring country’s Continental Shelf entitlement), and some countries (including the Cook Islands) may claim up to 350 nautical miles of Continental Shelf in accordance with the formula in UNCLOS Article 76. UNCLOS confers sovereign rights over the SBM Resources of a country’s Continental Shelf.” ‘Exclusive economic zone’ or ‘EEZ’ – “a maritime zone described by UNCLOS, measured at 200 nautical miles from the baseline, and encompassing the seabed and water column. A country has sovereign rights over the SBM Resources within its EEZ. Cook Islands National Seabed Minerals Policy 2014 21 ‘Exploitation’ – see SBM Activities. ‘Exploration’ – see SBM Activities. ‘Environment Act’ – “the Environment Act 2003.” ‘Environmental and social impact assessment’ – “an EIA under Part 4 of the Permits and Consents Regulations and encompasses a prior scientific study and evaluation of the potential effects of a proposed SBM Activity that assists the Government determine whether to permit the Activity and under what conditions.” ‘International Seabed Authority’ or ‘ISA’ – “the intergovernmental body, of which the Cook Islands is a member, established by UNCLOS to organise and control SBM Activities in The Area for the benefit of mankind as a whole.” ‘Licence’ – “a legal document issued by a legal Authority conferring rights on a person to conduct certain activities that would otherwise be prohibited (SBM Activities in the form of exploration or mining) subject to certain terms and conditions (for example, the payment of fees and royalties, compliance with specified performance and environmental protection standards, submission of data to Government and reporting obligations).” ‘Marine scientific research’ or ‘MSR’ – “scientific study, research and other academic activity undertaken to increase the world’s knowledge about the marine environment, not for industrial or economic purposes.” ‘Mining’ – see SBM Activities. ‘Ministry for Finance and Economic Management’ or ‘MFEM’ – see section 6. ‘National Environmental Service’ or ‘NES’ – see section 6. ‘Nautical mile’ – “a unit to measure distance based on lines of longitude and latitude, and set by international agreement at: 1.852 kilometres (equivalent to 1.15 miles or 6076 feet).” ‘Permits and Consents Regulations’ – “the Environment (Permits and Consents) Regulations 2013 made under the Environment Act.” ‘Precautionary approach’ (or ‘precautionary principle’) – “where there are threats of serious or irreversible damage to the environment, a lack of full scientific certainty regarding the extent of that damage shall not be used as a reason for postponing cost-effective measures to prevent or minimise environmental degradation.” ‘Prospecting’ – see SBM Activities. ‘Reserved sites’ – “a United Nations system designed to give developing countries preferential access to SBM Resources in international waters: UNCLOS requires that any developed country (or company sponsored by a developed country) applying for a Licence to explore or mine the SBM Resources in The Area must apply for two sites of equal size and mineral potential. The ISA can issue a contract to the applicant for one of those sites, and will retain the other as a ‘reserved site’ which can only be accessed by application from a developing country, or a company sponsored by a developing country. Reserved sites are already assessed to have high mineral potential, and come with the developed country’s prospecting data.” ‘Royalties Regulations’ – “Seabed Minerals (Royalties) Regulations 2013, made under the SBM Act.” ‘SBM Act’ – “Seabed Minerals Act 2009.” Cook Islands National Seabed Minerals Policy 2014 22 ‘SBM Activities’ – “Activities leading to and including the commercial mining of SBM Resources, including under the SBM Act. SBM Activities cover three phases: prospecting, exploration and exploitation (or mining). • “Prospecting is the search for SBM Resources, including estimation of the composition, size and distribution of SBM Resources and their economic values. Prospecting does not entail any exclusive rights of access to the seabed or water column, and may be conducted simultaneously by more than one Prospector in the same area or areas. Prospecting is likely to be low-impact (activities such as film or photography, sonar mapping, or sampling of small quantities of water, sediment and biota) and does not permit extraction of minerals for commercial use. Prospecting will yield MSR data that must be shared with the Government under the SBM Act. SBM samples obtained during prospecting remain Government property. A permit under the SBM Act is required for prospecting in Cook Islands waters. • “Exploration is the more systematic search for SBM Resources, including sampling and analysis to define the geometry and chemistry of deposits, the testing of systems and equipment, and the carrying out of studies for the purpose of investigating whether those minerals can be commercially mined. Exploration within Cook Islands waters requires a valid exploration Licence issued under the SBM Act. Such Licences do not permit large-scale extraction of SBM Resources from the Licence area, but do confer exclusive rights over SBM Resources and priority over other persons for future mining rights. Data gathered under an exploration Licence must be shared with the Government and samples extracted during exploration remain Government property. The Government may also ‘sponsor’ exploration activities in The Area. • “Mining or exploitation is the commercial recovery of SBM Resources, including the construction and operation of mining, processing and transportation systems. Mining on the Cook Islands Continental Shelf requires a mining Licence under the SBM Act. The holder of a mining Licence generally owns SBM Resources in the licensed area and can take them to market in return for the payment of a royalty and appropriate taxes to the Crown and compliance with Licence and legislative requirements.” ‘SBM Resources’ or ‘Manganese Nodules’ – “Minerals resources subject to the SBM Act that occur in the deeper-water parts of the ocean (generally deeper than 400 metres), and that are deposited on the surface of the seabed or within the sub-soil by natural processes. SBM Resources accordingly occur below the photic zone and beyond reefs and traditional fishing grounds, where hydrostatic pressures require specialist equipment. Among the different types of SBM Resources, the Continental Shelf of the Cook Islands is presently understood to contain deposits of polymetallic (or manganese) nodules. These nodules contain cobalt (used in rechargeable batteries and other industrial, high-tech, medical and military applications) as well as nickel, copper, manganese, niobium, zirconium. Rare-earth elements –in high-demand for technology such as plasma screens, SIM cards, wind turbines, solar panels – may also be present.” ‘SBM Revenues’ – “money earned from the commercial mining of SBM Resources in accordance with the SBM Act.” ‘Strategic Reserved Areas’- “means parts of the EZZ of the Cook Islands that may be reserved by our Government as a strategic national SBM asset, or for special SBM arrangements of national benefit to the Cook Islands”. Cook Islands National Seabed Minerals Policy 2014 23 ‘Tax Act’ – “Income Tax Act 1997, including as amended by the Income Tax Amendment Act 2013.” ‘Titles’ – “Prospecting permits and exploration, retention and mining Licences granted under the SBM Act.” Cook Islands National Seabed Minerals Policy 2014 24 i Article56 Rights, jurisdiction and duties of the coastal State in the exclusive economic zone 1. In the exclusive economic zone, the coastal State has: (a) sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources, whether living or non-living, of the waters superjacent to the seabed and of the seabed and its subsoil, and with regard to other activities for the economic exploitation and exploration of the zone, such as the production of energy from the water, currents and winds; (b) jurisdiction as provided for in the relevant provisions of this Convention with regard to: (i) the establishment and use of artificial islands, installations and structures; (ii) marine scientific research; (iii) the protection and preservation of the marine environment; (c) other rights and duties provided for in this Convention. 2. In exercising its rights and performing its duties under this Convention in the exclusive economic zone, the coastal State shall have due regard to the rights and duties of other States and shall act in a manner compatible with the provisions of this Convention. 3. The rights set out in this article with respect to the seabed and subsoil shall be exercised in accordance with Part VI. ii Seabed Minerals Act 2009 3. Objects of this Act - (1) The objects of this Act are (a) to establish a legal framework for the efficient management of the seabed minerals of the Cook Islands; (b) to provide for the management of the seabed minerals of the Cook Islands in a manner that is consistent with Government policy; (c) to ensure that seabed minerals activity is carried out in manner that is consistent with internationally accepted rules, standards, principles and practices; (d) to promote transparency in decision-making on matters concerning the management of the seabed minerals of the Cook Islands; (f) to implement measures to maximise the benefits of seabed mineral activity for present and future generations of Cook Islanders; and, Cook Islands National Seabed Minerals Policy 2014 25 (g) to promote a co-operative approach to the management of the seabed minerals of the Cook Islands involving government and island communities. (2) In order to achieve its objects, the Act inter alia (a) establishes a system for the allocation of titles in the form of permits, licences and leases under which title holders will be authorised to engage in seabed mineral activity under specific and enforceable conditions; (b) creates a register of titles and provides for the registration of dealings and interests in titles; (c) creates new regulatory bodies to administer the titles system established by this Act; (d) creates offences in respect of activities carried out in breach of the provisions of the Act; (e) provides for the protection of the environment through the continued application of the provisions of the Environment Act including environmental impact assessment and project permitting; (f) provides for the payment of royalty, fees, and rents in respect of seabed minerals activity in the Cook Islands; and, (g) provides for the management of information, and addresses issues relating to confidentiality and copyright.