Jamaica not liable for deep-sea mining company’s exploration, says Johnson Smith

Jamaica has sponsored Blue Minerals Jamaica Limited to carry out deep-sea mining exploration, but the parliamentary Opposition is raising questions about an apparent change in ownership of the company, which has not been reflected in the records of the Companies Office of Jamaica.

Senator Sophia Fraser Binns, who tabled questions, and other opposition senators, on Friday, quizzed Senator Kamina Johnson Smith, leader of government business, on the extent of Jamaica’s sponsorship of Blue Minerals Jamaica to carry out deep-sea mining exploration.

Peter Bunting, leader of opposition business in the Upper House, asked whether the identity of the “ultimate owners of Blue Minerals” was being kept a secret.

He told members of the Senate that checks with the Companies Office found that Dawkins Brown had one share in Blue Minerals Jamaica Limited. The opposition senator questioned if he had set up the company for the eventual beneficial owners.

“The shares of the ownership have been transferred, and it has not been reflected in the records of the Companies Office of Jamaica,” Bunting said, adding that the company was set up in 2018 in what appears to be “a shell to protect the identity of the ultimate owners, and six years later, no adjustment has been made to the record”.

However, Deputy President of the Senate Charles Sinclair cautioned Bunting against making certain conclusions, noting that the transfer of ownership might have taken place this year and that it was not yet reflected in the records of Companies Office.

However, Bunting pressed his government counterpart on who was the ultimate beneficial owner of the entity at the time the Jamaican Government sponsored it to carry out deep-sea mining exploration.

In her response, Johnson Smith said it “would be in order for us to inquire about the updating of the records at the Companies Office of Jamaica if they are not reflective of developments since the initial incorporation”.

However, she noted that the Government was not aware of any breach of the sponsorship agreement in the change of shareholding.

No financial obligations

Quizzed about the accord with Blue Minerals Jamaica Limited, Johnson Smith said that as with all other states, the terms of the sponsorship agreement with Jamaica were confidential.

However, she made it clear that Jamaica has no financial obligations under the agreement.

“As a sponsoring state, Jamaica is not liable for the actions of the contractor,” Johnson Smith added.

Opposition Senator Lambert Brown asked if the Government’s sponsorship of Blue Minerals Jamaica Limited was done through an unsolicited bid by the company or if there had been an open bidding where a number of companies sought the country’s sponsorship.

He also wanted to know if Jamaica would benefit financially from the prospects of the company’s exploration.

Johnson Smith said there would be potential financial benefits if mining took place.

She said the Government had adopted a position on deep-sea mining grounded in the United Nations Convention on the Law of the Sea (UNCLOS) and shaped by developments as they have unfolded over time in meetings of the International Seabed Authority (ISA), which is headquartered in Jamaica.

Johnson Smith said the Government had not yet promulgated a policy on deep sea mining, but she said that the country’s due diligence obligations are to establish laws and regulations by the time exploitation (mining) begins.

She said a draft Cabinet submission for the preparation of drafting instructions was being finalised.

“It is important to emphasise that no mining has been approved by the ISA to take place at this time,” she said.

Environmental protection

Acknowledging the potential economic benefits and the potential environmental risks, Johnson Smith said Jamaica would only support exploitation in the area if comprehensive regulation and a strong environmental-protection framework were in place.

A 2020 press release from the ISA said its council had approved Blue Minerals Jamaica Limited’s plan of work for exploration of poly-metallic nodules in the Clarion-Clipperton Zone (CCZ), making Jamaica the second Caribbean country at the time and the sixth small island developing state to sponsor a contractor for exploration in the area.

The CCZ, located in the Pacific Ocean, contains rich deposits of poly-metallic nodules, which are a source of nickel, cobalt, copper, and manganese.

Following the approval of its plan of work, Blue Minerals Jamaica Limited will be able to sign a 15-year contract with the ISA to explore a geographical area in the CCZ, covering almost 75,000km2, made of parts of reserved areas contributed by UK Seabed Resources Ltd, the government of the Republic of Korea, and the Interoceanmetal Joint Organization.

The system of so-called “reserved areas” ensures that developing countries can access deep-sea mineral resources.

In March this year, a small group of environment and climate advocates gathered at the ISA in downtown Kingston to protest against deep-sea mining.

Dahvia Hylton, research, policy development and advocacy lead of the Jamaica Climate Change Youth Council, told The Gleaner, at the protest, that the ocean, which is home to thousands of species of marine animals and plant life, was too precious for business interests to be granted licences to mine the seafloor with the intention of extracting precious minerals.

edmond.campbell@gleanerjm.com