|
SOPAC urges regional approac h to deep sea mining
By Steve Menzies
The Pacific Islands Applied Geoscience Commission (SOPAC) is urging greater collaboration among Pacific Islands Countries to strengthen the management of deep-sea mineral resources potentially worth billions to the region.
Regional interest in deep sea minerals were reinvigorated last June when the Canadian-based exploration company Nautilus Minerals Inc. announced the discovery of high-grade deposits of gold, copper and zinc in Papua New Guinea’s Bismarck Sea.
By next year, the company hopes to start extracting up to 6000 tonnes of minerals a day using a new custom-made vessel and remote-controlled mining machines that can operate at depths of more than 2000 metres. Once this floating mining operation is in place it could then be easily deployed in other parts of the Pacific.
Both Nautilus and the United Kingdom-based Neptune Minerals now have substantial exploration licences for the territorial waters of Papua New Guinea, the Solomon Islands, Tonga, Federated States of Micronesia, New Zealand and Vanuatu. Nautilus also has applications for additional licenses pending in Fiji.
SOPAC scientist, Dr Arthur Webb, says there are growing concerns that countries are issuing prospecting licenses despite a lack of any specific legislation governing offshore mineral exploration and mining.
“Currently in the Pacific any country with jurisdiction over an Exclusive Economic Zone (EEZ) can issue licenses for prospecting and extraction without any legal framework to guide policy surrounding tax and revenue or how this wealth may ultimately be shared within the countries,” he says.
“Apart from PNG and Fiji, no other country in the region has started the process of developing an offshore minerals policy. In the case of Fiji, there has been little progress since their original draft policy paper was first drafted nearly 10 years ago,” he says.
SOPAC geologist, Akuila Tawake, says it’s estimated that some countries could potentially generate tax revenues of up to US$100-US$200 million a year from mining their deep-sea mineral resources.
“We all want to see positive economic development in the region but we also have to be mindful of the huge social and environmental impact this could have on some of our smaller nations.
“Rather than each country trying to deal with these issues on its own, we believe the best solution is to pull together a team of specialists at regional level to assist countries deal with economic, social and environmental issues such as environmental monitoring and working closely with the companies on a regional basis,” he says
Dr Webb believes a regional treaty on deep-sea mining resources could help provide Pacific islands countries with a useful framework for developing their own national legislation and policy.
“A regional approach can help individual countries with limited resources obtain maximum benefits from their mineral resources while also ensuring the protection of their communities and the wider environment,” he says.
SOPAC says eight Pacific islands countries now also have credible claim to more than 1.5 million square kilometres of additional space beyond their current 200-mile Exclusive Economic Zones, giving them exclusive rights to additional potential mineral and biological resources.
However, most of these countries (Fiji, Cook Islands, Solomon Islands, Palau, the Federated States of Micronesia, Tonga and Papua New Guinea), only have until May 2009 to apply to the United Nations to extend their exclusive rights over these additional seabed resources.
SOPAC is currently undertaking a regional study to demonstrate potential benefits Pacific islands countries may gain by formally declaring their extended maritime boundaries.
SOPAC hopes the study will demonstrate a large potential large pay-off for those countries that invest in completing the required marine surveys, negotiating overlapping boundary claims with neighbouring countries, and lodging their claims with the United Nations.
Back in February 1999, SOPAC originally worked with regional partners and member countries to develop the “Madang Guidelines” to assist and guide individual nations in the development of policy and legislation to govern offshore mineral exploration and exploitation.
These guidelines also recommended that government and industry work together to develop an understanding of the potential impacts on the unique and largely unknown life forms associated with active hydrothermal zones.
SOPAC’s Tawake, says the region only has a brief window of opportunity to implement protective measures before there is a sudden rush to commercialise these valuable resources.
“The deep sea ocean floor is truly one of the last explored habitats on earth, and we do not fully understand the impacts of our actions on these ecosystems.
“Mining these poly-metallic deposits may be less harmful than equivalent land mining. But any claims that seabed mining poses fewer environmental risks remain largely untested. Until a better understanding of these ecosystems has been reached, the threats posed by deep sea mining remain uncertain.
“The international community should also be concerned about pollution of international waters by unregulated mining activities within the EEZs of individual countries.
“The reality is that sediment plumes don’t recognise political boundaries and this could have an impact on our regional fisheries resources,” he says.
Tawake says that deep sea mining will avoid some of the biggest problems associated with land mining including acid mine drainage and the scarred landscapes caused by deep excavations.
However, he says the need for onshore processing will inevitably lead to the generation of waste materials. If not properly managed this could also have a negative impact on coastal environments and communities.
Tawake says SOPAC will be working closely with the World Bank, and potential donors such as AusAid, to develop a regional regulatory and legislative framework that will ensure these deep mineral resources are harnessed for the maximum benefit of Pacific Island Countries.
“In November, the World Bank plans to host an initial workshop with relevant national key stakeholders responsible for minerals and finance to discuss a regional framework that can be adopted and tailored to meet the specific needs of each country.
The next phase of work will look specifically at the fiscal and tax regime for deep sea minerals exploitation,” he says.
As the regional agency with the mandate for dealing with non-living resources in the Pacific, Tawake believes SOPAC must play a key role in assisting the Pacific islands countries develop the policy, legislation and technical support required to manage these important mineral resources.
“It makes sense for Pacific islands countries to work closely together to ensure we have the best possible systems in place to generate maximum benefits for our national economies while protecting the long-term needs of our environment and our communities,” he says.
FlexPacific follows Digicel footprint
By Dionisia Tabureguci
It’s a marketing style rarely seen in the Pacific. The engagement of ordinary folks like you and me to sell a product, shaking up a bit entrepreneurship in us along the way.
But this is exactly what FlexPacific Ltd is up to as it masterminds the on-the-ground drive to sell Digicel Pacific’s airtime to as wide a Pacific landscape and to as many a Pacific population as possible.
In July, it announced it was appointed by Digicel Pacific to be a master distributor to resell the mobile network operator’s airtime.
Set up by Stephen Breen, who had initially managed Digicel’s retail rollout in Papua New Guinea, FlexPacific tapped into the power of local communities to help sell Digicel’s airtime contained in top-up cards going by the commercial name of Digicel Flex.
The strategy became an instant hit in Papua New Guinea and recently Vanuatu and is definitely on its way to Fiji when Digicel opens shop there, an event expected towards the end of the year.
“We are making a great progress with our Village Store concept,” Breen told ISLANDS BUSINESS last month.
“There are up to 77 stores now in PNG and 10 in Vanuatu. We’re rolling out street vendors across the region with 20 in Port Moresby and 20 in Port Vila, Vanuatu, and this will expand into Fiji towards the end of the year. And the Flex Kiosk has proved to be an enormous success in Port Vila and Port Moresby that we intend to roll these out in Fiji.” FlexPacific’s Street Vendor concept sees it working with street youth to sell Digicel Flex, “giving them an opportunity to earn a living and improve their lives and make a difference in their communities”.
“The Digicel street vendors based in Port Moresby were FlexPacific’s first partners,” said Breen.
“This is the first project of its kind in PNG. Digicel, FlexPacific and the street vendors have formed a strong and successful partnership.”
FlexPacific’s drive to get mobile communication into the rural areas produced the village store concept.
“The village store concept came about as we set up operations throughout the Pacific,” said Breen.
“Everywhere we went, we noticed a thriving tucker shop business where all sorts of dry goods were sold. Often these tucker shops or village stores were located at a busy junction or right in the heart of the village. Where better to offer Digicel products. There was a pent up demand. People simply want to communicate whether in the villages or major cities. They don’t want to take a bus into town just to buy a flex card. We decided to bring it to them. We approached Stephen Sikas, an entrepreneurial tuck shop owner in Port Moresby and asked him if he would be interested in trying out our idea. We painted his shop, branded it with Digicel logos and supplied him handsets and flex cards and the concept was born.
“We provided him a generator and a recharge station so people can charge their phones—electricity is a problem in PNG! Sikas and his family now sell flex cards not only in his shop but in a number of markets in Port Moresby.”
With the Flex kiosk, the Digicel flex cards will be virtually available on every street corner in the Pacific.
But it doesn’t end there. FlexPacific has also roped in the microfinance institutions as partners in its venture.
“We have also teamed up with PNG Microfinance Ltd in PNG and VanWoods Microfinance in Vanuatu to help bring flex into the heart of the community, where traditionally communications has been by word of mouth and unaided by modern technology,” Breen said.
“Microfinance is a huge part of everyday life in the Pacific. Thousands of entrepreneurs all over the region are involved in microfinance.
“I was amazed. When I first met the Mama’s in Vanuatu, I thought I could teach them a thing or two about sales. I came back from that first meeting with loads of ideas on how to organise and empower sales team.”
International award provides incentive
If there is one thing Jagdish C Sharma, Managing Director of Fiji-based Sharmas-Rent-A-Car, is proud of—it is the recognition his rental company received from international observers.
Sharmas became the first Fijian car rental business to win an international award in recognition for its customer satisfaction, leadership, innovation and prestige. Independently recommended, voted and awarded by an independent international committee made up of companies and prestigious professionals, Sharma’s views this award as an incentive and recognition for its staff and management.
Sharma, who is also the founder of the company, believes that quality customer services no doubt leaves a favourable impression on customers and that this can do more to promote a company rather than spending millions of dollars on advertising campaign.
He believes that innovation and continually assessing the market needs are the key to success.
After 20 years and with a solid client base, Sharmas continues to expand its services in the local tourism industry with its recently completed holiday apartments.
“Fiji is a paradise; a dream holiday for most, but if it isn’t made accessible, then customers will choose other destinations over Fiji,” Sharma said.
“The tourism industry is a booming market and we need to be pro-active in promoting the fact that we exist. It is as simple as informing people who we are, where we are and how we can make their holiday experience a better one.”
|
