Government sees seabed mining as economic game-changer
Cook Islands government has revealed that it sees greater economic potential in seabed mining, which has fuelled concerns from the Opposition.
The deep-sea mining for polymetallic nodules rich in cobalt, copper, nickel and manganese has the potential to transform the country’s earning to “much, much greater levels”, says Prime Minister Mark Brown.
In an interview with Cook Islands News last month, Brown said that Cook Islands moved from a country that was agricultural-based exports, earning millions of dollars a year, to now a country that earns its income from tourism, earning hundreds of millions of dollars a year.
Tourism’s contribution to the country’s economy is set to cross half a billion dollars this year, with projected earnings of $520 million for 2024, representing 73 per cent of the GDP.
When asked about the kind of revenue the government could expect from seabed mining, if it proceeds after the current exploration phase, PM Brown said “it could be transformational”.
However, Opposition MP Teariki Heather, the leader of the Cook Islands United Party, opposed the government’s pursuit of deep-sea riches, cautioning them to consider the negative impact Nauru’s phosphate mining had on the island nation.
“Agriculture has been our main source of income then we have tourism. If they’re already thinking like that then it’s going to be a great impact on our environment and our livelihood so it’s the question for us Cook Islanders and the future generations to come. We want them (future generations) to enjoy what we’re enjoying now,” said Heather, the former deputy prime minister.
“The simplest example is Nauru. I always feel for Nauru, they have millions of dollars from their guano minerals and now, they’re left with nothing. That’s a classic example of what we don’t want to see happening and I just don’t want our country to suffer because of that.”
Cook Islands is currently in its third year of a five-year exploration phase to determine the feasibility of deep-sea mining for polymetallic nodules rich in metals needed in the green energy transition.
Three companies were granted a seabed minerals exploration licence in 2022 to carry out exploration work. As part of the exploration process, these companies must review the associated environmental risks and if they can prove that mining is viable, the government will award them a mining licence.
Prime Minister Brown, who is also the Minister responsible for Seabed Minerals, said: “This (seabed mining) has the potential to transform again our income earning to much, much greater levels than we have now.”
He adds much of this demand depends on global demand.
“So demand for agriculture was what drove our exports. Demand for tourism and the tourism sector is what’s driving current prosperity, the people wanting to come here to the Cook Islands. Demand for critical metals will be the determining factor in whether this becomes commercially viable or not.”
Opposition leader Tina Browne of the Democratic Party said that they did not support the concept of seabed mining unless sufficient evidence existed and an environmentally friendly technology was available.
Browne reiterated the Opposition’s stance was clear – no harvesting is to commence until an environment-friendly technology is available and Cook Islanders can fully participate in the workforce.
On Friday last week, the Cook Islands Seabed Minerals Authority (SBMA) announced the passage of the Seabed Minerals (Minerals Harvesting and Other Mining) Regulations 2024 (MH Regulations).
According to SBMA, the adoption of these regulations is a crucial step in establishing a comprehensive legal framework, providing all stakeholders with clarity and certainty regarding the country’s legal regime for seabed minerals governance.
It reiterated that establishing the legal framework governing the management of minerals harvesting activities was a separate process entirely from the decision on whether minerals harvesting activities would be permitted to take place.