Brief

The Cook Islands has updated its seabed minerals legislation to improve how the sector is regulated, clarify key definitions, and modernize administrative practices.

The Seabed Minerals Amendment Act 2024 introduces several practical changes to strengthen transparency, reporting, enforcement, and cost recovery — ensuring the Seabed Minerals Authority can oversee this emerging industry effectively and responsibly.

Origins

The Seabed Minerals Act 2019 provides the legal foundation for managing exploration and potential future mining of seabed resources, such as polymetallic nodules, in the Cook Islands’ waters.

Following the country’s first licensing round in 2022 and the initial phase of exploration, the Seabed Minerals Authority identified areas where the law could be clearer or more efficient.

The 2024 amendments reflect this early implementation experience and aim to align with best practices in environmental regulation, corporate oversight, and resource governance.

Key Changes

1. Introducing “Minerals Harvesting”

A new legal term — minerals harvesting — has been added to describe the specific activity of collecting polymetallic nodules from the surface of the seabed without cutting into rock or sediment.

This change responds to concerns that the word “mining” is too broad and potentially misleading.

While “mining” remains the umbrella term in the law, “minerals harvesting” now clarifies the nature of Cook Islands’ current seabed activities, which are more like collection than excavation.

2. New Powers for the Authority to Issue Standards and Guidelines

The Act now gives the Seabed Minerals Authority clearer authority to issue legally binding standards and advisory guidelines.

These standards can set technical rules, data collection protocols, or environmental practices that license holders must follow. Guidelines, while not binding, help companies understand how to comply with the law.

Importantly, all standards must receive Cabinet approval before taking effect, ensuring appropriate oversight.

3. Updated Information Disclosure and Confidentiality Rules

To improve transparency, the law removes outdated language about “third party information” and replaces it with clearer disclosure rules. It also eliminates the term “confidential information,” which lacked a precise legal definition.

Now, information will be protected only if it meets specific criteria (e.g., trade secrets or commercially sensitive data), making the regime more predictable for both the Authority and license holders.

4. Aligning Annual Reporting with Work Plans

Previously, annual reports were based on the calendar year, which didn’t align well with the start dates of five-year work plans tied to the date licenses were issued.

This mismatch meant some early activities weren’t reported until a year later. The law now fixes this by making annual reports due three months after the anniversary of a license’s issuance date — giving the Authority more timely and accurate information for oversight.

5. Simplifying Register and Name Change Procedures

The Authority maintains a public Register of Titles to record license information.

The law now specifies that only complete or publicly notified applications need to be added to the register, clarifying earlier ambiguities.

A new section also allows for administrative updates when a license holder changes its legal name, avoiding unnecessary delays or confusion.

This provides legal continuity without requiring a full license transfer process.

6. Clarifying Roles: “Inspector” vs. “Observer”

To support compliance at sea, the term “inspector” is now used in place of “observer” in the law. Inspectors, unlike observers in the fisheries context, have both monitoring and enforcement powers.

This change ensures consistency with the Authority’s Monitoring, Compliance and Enforcement Framework and reflects the actual authority these personnel hold during expeditions.

7. Cost Recovery for Due Diligence Activities

The Authority often incurs costs when conducting due diligence — for example, when reviewing license applications or corporate changes.

The amended law now makes it explicit that the Authority can charge fees to recover these costs.

This aligns with best practices in regulatory governance, ensuring the Authority has the resources to fulfill its duties without relying solely on public funding.

Technical Updates

The Act also includes minor corrections such as updating references from “Queen’s Representative” to “King’s Representative” and replacing the term “voyage” with “expedition leg” to better match how offshore activities are structured today.

Key Takeaways

  • License holders must now align their annual reporting with the anniversary of their license issue date and prepare for enforceable technical standards issued by the Authority. They will also be required to cover costs for due diligence checks tied to compliance or corporate changes.
  • Prospective applicants should be aware of the new legal term “minerals harvesting,” which specifically refers to polymetallic nodule collection, and ensure applications are framed in line with this definition and evolving regulatory expectations.
  • Seabed Minerals Authority now has clearer authority to issue legally binding standards and operational guidelines, recover compliance-related costs, and update title records more efficiently, enhancing its capacity to regulate effectively.
  • Environmental and civil society groups gain from greater transparency through revised information disclosure rules and the formalization of reporting and oversight processes tied to exploration activities.
  • General public can expect stronger government oversight, clearer legal definitions, and more accountable governance of seabed minerals activities.