skip to main content

Equity Interest Scheme’s Compatibility with the UNCLOS 1982’s Common Heritage of Mankind Principle

*Agustina Merdekawati orcid scopus  -  Faculty of Law, Universitas Gadjah Mada, Indonesia
Marsudi Triatmodjo scopus  -  Faculty of Law, Universitas Gadjah Mada, Indonesia
Open Access Copyright 2022 LAW REFORM under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Abstract

The Mining Code Exploration for polymetallic sulphides and cobalt-rich ferromanganese crusts provide options for exploration contractors to offer an equity interest in a joint venture with Enterprise. UNCLOS 1982 has never regulated the existence of such a scheme as a substitute for the obligation to submit reserved areas at the exploration stage. The presence of the equity interest scheme raises questions on its compatibility with the Common Heritage of Mankind (CHM) principle, especially with the aspect of equitable benefits sharing (EBS) to all mankind. This study aimed to assess the compatibility of the equity interest scheme with the CHM principle. The study was conducted normatively by analyzing equity interest scheme implementation associated with the norms in the CHM principle and UNCLOS 1982. The results showed that the equity interest scheme is compatible with the EBS aspects in the CHM principle by presenting the optimization of financial benefits for all mankind. The implementation of the equity interest scheme, even though it is contrary to the provisions of Annex III Article 1982, is a form of subsequent practice accepted by state parties. This study recommends that the relevant stakeholders reconsider the involvement of the Enterprise in the equity interest scheme based on financing efficiency.

Fulltext View|Download
Keywords: Common Heritage of Mankind; Deep Seabed Mining; Equitable Benefits Sharing; Equity Interest; UNCLOS 1982

Article Metrics:

  1. Adar, Korwa Gombe. (1987). A Note on the Role of African States in Committee I of UNCLOS III. Ocean Development & International Law, Vol.18, (No.6), pp. 665–681.DOI: 10.1080/00908328709545843
  2. Arrow, Dennis W. (1982). The Customary Norm Process and The Deep Seabed. Ocean Development & International Law, Vol.9, pp.1-59.DOI: 10.1080/00908328109545656
  3. Egede, E. (2009). African States and Participation in Deep Seabed Mining: Problems and Prospects. International Journal of Marine and Coastal Law, Vol. 24, (No.4), pp.683–712. DOI: 10.1163/157180809X455601
  4. Feichtner, I. (2019). Sharing the Riches of the Sea: The Redistributive and Fiscal Dimension of Deep Seabed Exploitation. European Journal of International Law, Vol.30, (No.2), pp.601–633. https://doi.org/ 10.1093/ejil/chz022
  5. Guntrip, E. (2003). The Common Heritage of Mankind: An Adequate Regime for Managing the Deep Seabed? Melbourne Journal of International Law, Vol. 4, pp. 376–405. https://www.taylorfrancis.com/ chapters/edit/10.4324/9781315254135-11/common-heritage-mankind-adequate-regime-managing-deep-seabed-edward-guntrip
  6. Jaeckel, A. (2020). Benefitting from the Common Heritage of Humankind: From Expectation to Reality. The International Journal of Marine and Coastal Law, Vol.35,(No.4), pp.660–681. https://doi.org/10.1163/15718 085-BJA10032
  7. Jaeckel, Aline., Ardron, Jeff A., & Gjerde, Kristina M. (2016). Sharing Benefits of the Common Heritage of Mankind – Is the Deep Seabed Mining Regime Ready? Marine Policy,Vol.70,pp.198–204.http:// dx.doi.org /10.1016/ j.marpol.2016.03.009
  8. Kasa, Sjur., Gullberg, Anne T., & Heggelund, Gørild. (2008). The Group of 77 in the International Climate Negotiations: Recent Developments and Future Directions. International Environmental Agreements: Politics, Law and Economics, Vol.8,(No.2), pp.113–127. https://doi.org/10.1007/s107 84-007-9060-4
  9. Noyes, John E. (2012). The Common Heritage of Mankind: Past, Present, and Future. Denver Journal of International Law & Policy, Vol. 40, (No. 1), pp. 447-71. https://digitalcommons.du.edu/cgi/viewcontent.cgi?article=1156&context=djilp
  10. Olney, William W. (2013). A Race to the Bottom? Employment Protection and Foreign Direct Investment. Journal of International Economics, Vol. 91, (No.2), pp.191–203. https://doi.org/10.1016/j.jinteco.2013.08.00
  11. Oyarce, Ximena H. (2018). Sponsoring States in the Area: Obligations, Liability and the Role of Developing States. Marine Policy,Vol.95,pp.317–323. https://doi.org/ 10.1016/j.marpol.2016.06.002
  12. Snoussi, Maria., & Awosika, Larry. (1998). Marine Capacity Building in North and West Africa. Marine Policy, Vol. 22, (No.3), pp.209–215. https://doi.org/10.1016/S030 8-597X(98)00007-4
  13. Vasciannie, S. (1989). Part XI of the Law of the Sea Convention and Third States: Some General Observations. Cambridge Law Journal,Vol.48,(No.1),pp.85–97.https://doi. org/10.1017/S0008197300108359
  14. Van Nijen, Kris., Van Passel, Steven., Brown, Chris. G., Lodge, Michael W., Segerson, Kathleen., & Squires, Dale. (2019). The Development of a Payment Regime for Deep Sea Mining Activities in the Area through Stakeholder Participation. The International Journal of Marine and Coastal Law,Vol.34,(No.4),pp.571–601. https://doi. org/10.1163/15718085-1344 1100
  15. Wang, Chuanliang., & Chang, Yen-Chiang. (2020). A new interpretation of the common heritage of mankind in the context of the international law of the sea. Ocean & Coastal Management,191. https://doi.org/ 10.1016/j.ocecoaman.2020.105191
  16. Wolfrum, R. (1983). The Principle of the Common Heritage of Mankind. ZaöRV, Vol.43, (No.2),pp.312–337. https://zaoerv.de/ 431983/4319832a312337.pdf
  17. Dingwall, J. (2020). Commercial Mining Activites in the Deep Seabed Beyond National Jurisdiction: the International Legal Framework. In Catherine Banet (Ed.), The Law of the Seabed (pp. 139–162). Leiden: Brill Nijhoff
  18. Millicay, María F. (2015). The Common Heritage of Mankind: 21st Century Challenges of a Revolutionary Concept. In Lilian del Castillo (Ed.), Law of the Sea, From Grotius to the International Tribunal for the Law of the Sea, (272–295). Leiden: Brill Nijhoff
  19. Taylor, P. (2019). The Common Heritage of Mankind: Expanding the Oceanic Circle. In P. R. Boudreau, M. R. Brooks, M. J. A. Butler, A. Charles, S. Coffen-Smout, D. Griffiths, D. Werle (Eds.), The Future of Ocean Governance and Capacity Development (pp. 142–150). Leiden: Brill Nijhoff
  20. International Seabed Authority. (2006). Mining Cobalt-Rich Ferromanganese Crusts and Polymetallic Sulphides Deposits: Technological and Economic Considerations. Proceedings of the International Seabed Authority’s Workshop (pp. 313-322). Jamaica
  21. International Seabed Authority. (2019). Current Status of the Reserved Areas with the International Seabed Authority. Retrieved from https://www.isa.org.jm/files/files/ docu ments/statusofreservedareas-01-2019-a.pdf
  22. International Seabed Authority. (2021). Exploration Contracts. Retrieved from https://isa.org.jm/exploration-contracts
  23. International Seabed Authority. (2000). Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area
  24. International Seabed Authority. (2001). Considerations Relating to the Regulations for Prospecting and Exploration for Hydrothermal Polymetallic Sulphides and Cobalt-Rich Ferromanganese Crusts in the Area
  25. International Seabed Authority. (2010). Decision of the Assembly of the International Seabed Authority relating to the regulations on prospecting and exploration for polymetallic sulphides in the Area
  26. International Seabed Authority. (2013). Decision of the Council of the ISA relating to Amendments to the Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area and Related Matters
  27. International Seabed Authority. (2018a). Issue Related to the Possible Alignment of the Authority’s Regulations on Prospecting and Exploration Concerning the Offer of an Equity Interest in Joint Venture Arrangement
  28. International Seabed Authority. (2018b). Report of the Chair of the Legal and Technical Commission on the Work of the Commission at the First Part of its Twenty-Fourth Session

Last update:

  1. Implications Of Illegal Community Mining For Economic Development In Bangka Regency, Indonesia

    Derita Prapti Rahayu, Sri Rahayu, Faisal Faisal, Cahya Wulandari, Muhamad Sayuti Hasan. LAW REFORM, 19 (2), 2023. doi: 10.14710/lr.v19i2.52866

Last update: 2024-11-05 09:24:15

No citation recorded.