US companies could still mine deep seabed outside UNCLOS by going through foreign subsidiaries
U.S. companies may operate through foreign subsidiaries. If a U.S. company insists on engaging in mining only under the convention’s auspices despite the inequities associated with the UNCLOS regime, it may do so. Specifically, if the United States continues to remain a non-member of UNCLOS, a U.S. seabed mining company may incorporate a subsidiary entity in a country that is party to the convention. In this manner, the U.S. entity’s subsidiary may apply for an exploration contract under the sponsorship of the foreign country and engage in seabed mining through the convention’s regime.
The practice of U.S. companies partnering with foreign entities in seabed mining ventures has precedent. As previously noted, all four U.S. private-sector mining consortia originally included foreign partners or ownership interests: KCON had Canadian, Japanese, and british interests; OmA had belgian and Italian interests; OmI had Canadian, Japanese, and German interests; and OmCO had Dutch interests.90
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According to U.S. foreign relations law, the United States may engage in deep seabed mining activities even if it does not accede to UNCLOS, provided that such activities are conducted without claiming sovereignty over any part of the deep seabed and as long as the mining activities are conducted with due regard to the rights of other nations to engage in mining.This position is also reflected in the Deep Seabed Hard Mineral Resources Act of 1980.Related Quotes:
Parent Arguments:Supporting Arguments:
- US companies could still mine deep seabed outside UNCLOS by going through foreign subsidiaries
- US ocean policy already allows development of deep seabed mingling resources within US EEZ
- Under 1980 DSMHRA Act, US citizens and corporations are fee to mine deep seabed regardless of whether US is party to UNCLOS
- An informal, non-UNCLOS, multilateral organization would be sufficient to protect U.S. interests in mining deep seabed
- ... and 4 more quote(s)