Debated in Parliament on 12 Feb 2015.
Order for Second Reading read.
Mdm Speaker, I beg to move, "That the Bill be now read a Second time."
The Deep Seabed Mining Bill aims to establish a licensing regime to regulate the exploration for, and extraction of deep seabed resources by companies sponsored by Singapore.
Let me explain why we need to enact this Bill. This Bill will allow Singapore companies to enter the deep seabed mining industry. This is an emerging industry. We can leverage on our strengths and experience in the offshore oil and gas, the marine engineering as well as our trading sectors to capitalise on the growing opportunities in deep seabed mining.
Introducing this Bill will bring us in line with the provisions under the United Nations Convention on the Law of the Sea (UNCLOS) and the International Seabed Authority (ISA) regulations. The proposed licensing regime will ensure that our companies undertake deep seabed exploration and extraction activities in a responsible manner and not cause damage to the marine environment. Penalties will be put in place to serve as deterrence against potential violations or, in the event of non-compliance, to hold errant companies accountable for their actions.
Under UNCLOS, the Government bears a "due diligence" obligation to ensure that a company sponsored by Singapore carries out its activities in a manner which conforms with relevant provisions of UNCLOS, ISA regulations and its exploration contract with ISA. This obligation will be met by Singapore enacting this Bill to secure the sponsored company's compliance. In doing so, the Government will also be protected from any liability arising from environmental or non-environmental damage caused by any failure of a sponsored company to comply with its obligations.
The deep seabed licensing regime is established under Part II of the Bill, consisting of clauses 4 to 17.
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Let me highlight some of the key elements. It will be an offence for a Singapore company to engage in deep seabed mining without a licence issued by the Minister and a contract with the ISA. Offenders may be fined up to S$300,000 for an initial offence and they may be subject to a further fine not exceeding S$50,000 daily for a continuing offence, capped at S$500,000. As an added deterrent, individuals, including company directors who are complicit in the offence, may also be imprisoned for up to three months.
These penalties are benchmarked against those imposed by other countries which have enacted similar legislation, such as the UK. They are also pegged at a level to provide sufficient deterrent effect.
The Bill requires that companies meet certain conditions, such as having the technological and financial capabilities to carry out the activity that it wishes to conduct and undertaking necessary measures to minimise damage to the marine environment, before such a licence can be awarded. Mdm Speaker, I beg to move.
Question proposed.
Assoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef (Marine Parade) : Mdm Speaker, there has been an increase and a growing interest worldwide in deep sea mining activities. The most critical concern will be sustainability of the environment and its protection and preservation. I support the Bill and would like to raise the following points.
First, how many, if any, Singapore companies and Singapore registered companies are involved currently, or have been involved, in these activities and expeditions? How have the numbers been and what is the trend over the last decade?
Second, recently, the Secretary General of ISA mentioned about the preparation of an exploitation code for deep seabed polymetallic nodules mining, capacity building and environmental protection. Will Singapore undertake these regulations, when ready, into our legislation, in support of, and upon passing this Bill today?
Third, how are contracts evaluated when they come through Singapore for an application? Do we have the relevant staff and expertise required for these evaluations, which should include geological, chemical and physical oceanographic information? Do we
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have trained personnel who are able to question and scrutinise these licence applications?
Fourth, Madam, many such contracts, when approved, are long term and will last, perhaps, 10 to 15 years or more. My question is: with such long duration, how will monitoring be carried out? And are these contractors required to submit regular reports, information and data? These data should not just be on the products or resources, but also on the environmental impacts. Will the annual reports of these companies also be made available to the licensing state?
Fifth, the ISA does have training and capacity building in deep sea mining and research. Are there Singapore companies involved in this and do we send contractors for this training when they make an application?
Sixth, pertaining to the certificate of sponsorship, with reference to Part I, clause 8, the phrase, I quote, "The Minister may sponsor a licensee's application to the ISA for a corresponding ISA contract", can I enquire what does the term "sponsorship" comprise: is it a letter of support, grant of a licence?
Finally, Madam, on the Seabed Disputes Chamber, can I ask the Minister for clarification on its functions, jurisdiction and how it will work with the various states in the event a case arises where an intervention is required? I support the Bill, Madam.
Minister Lim.
Mr Lim Hng Kiang : Mdm Speaker, I thank the Member for Marine Parade GRC for her support of the Bill. She raised several pertinent questions and sought some clarifications. Let me try and respond.
First, she asked how many, if any, Singapore companies are currently involved in deep seabed mining. Madam, to date, as far as we know, only one Singapore-based company – Ocean Minerals Singapore (OMS) – has notified us about its intention to undertake deep seabed exploration. This company is a joint venture between Keppel and Lockheed Martin.
Second, the Member asked about the preparation of the exploitation code by ISA and whether we would undertake regulations to enforce this code. Singapore is participating in ISA's deliberations together with other ISA members in the development of the exploitation code. This Bill, when enacted, will enable the Government to introduce further regulations should the need arise, to comply with evolving international standards and regulation of
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deep seabed mining.
Madam, the Member asked how would the contracts be evaluated and whether we have the capability to question and scrutinise these applications. Let me explain that deep seabed mining consists of two limbs. Any company wanting to undertake deep seabed mining has to apply for a contract with ISA. At the same time, they need the country where the company is based to sponsor that application. So, as far as the Singapore Ggovernment is concerned, we will evaluate applications from companies for sponsoring of the licence, from both the economic as well the environmental angles. So, to qualify, a company must possess the technological and financial capabilities to undertake the activities they plan to do; and, secondly, demonstrate that it has planned its activities in a manner that complies with the relevant regulations in order to minimise any potential damage to the marine environment.
To do so, we have set up an inter-agency taskforce comprising MTI, MEWR, MFA, MinLaw and AGC and this inter-agency taskforce has been formed to oversee such applications for licences and how we would want to sponsor the companies. And where necessary, this taskforce will consult external experts in the maritime and marine environment fields, some of whom are engaged by ISA.
The next question is how would monitoring be carried out, because such contracts may last 10 to 15 years. As part of ISA's regular monitoring mechanism, contractors are required to submit annual reports relating to the exploration activities that they have carried out in the deep seabed. Singapore will also require our licensed companies to file the reports with us on a regular basis and we will monitor our sponsored entities on this basis and will intervene if our companies are at risk of non-compliance.
The next question that the Member raised is about the training and capacity building that ISA has and whether any Singapore companies are involved in this. Currently, we are not aware of any Singapore companies involved in ISA's training programmes and capacity building.
On the certificate of sponsorship, the question is what this sponsorship comprises of. Basically, by issuing a certificate of sponsorship, the sponsoring government is declaring to ISA that we accept the responsibility to ensure that our sponsored entity will carry out its activities in conformance with UNCLOS and the ISA regulations. And in tabling this Deep Seabed Mining Bill, we are, in fact, establishing a framework for carrying out this responsibility.
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Finally, the Member asked about the jurisdiction of a Seabed Disputes Chamber and how it will work with the various states. The Seabed Disputes Chamber has jurisdiction over activities in the deep seabed and, if the Seabed Disputes Chamber were to find a Singapore-licensed company responsible in the dispute and orders compensation or reparation, then clauses 18 and 19 of our Bill will allow for such an order to be registered and thereafter treated as a judgment of our Court. And this will then allow Singapore to work with the ISA to enforce against any errant activities should the need arise.
Madam, I believe I have answered the questions.
*Question put, and agreed to.*
*Bill accordingly read a Second time and committed to a Committee of the whole House.*
*The House immediately resolved itself into a Committee on the Bill. – [Mr Lim Hng Kiang].*
*Bill considered in Committee; reported without amendment; read a Third time and passed.*
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