Offshore Minerals in the 21st Century

ABSTRACT This paper presents an overview of the marine minerals program as it exists today in the United States and what is envisioned for the future. It attempts to define a proper role for Government in a market economy that will allow private investment to occur if the market conditions are right. It outlines the program strategy followed by the Office of International Activities and Marine Minerals, Minerals Management Service, U.S. Department of the Interior, and focuses on the question of where the United States as a Nation may wish to be in the 21ST century with respect to a marine minerals program and what needs to be done to get there. INTRODUCTION To date, a viable marine minerals industry has' not been established in the Uni ted States. The lack of progress over the last 30 years in establishing such an industry has been well documented in the literature. The lack of progress directly contrasts with the experiences of the United Kingdom and Japan, which have had successful offshore sand and gravel development programs for over 30 years. Following the establishment of the U. S. Exclusive Economic Zone (EEZ) in 1983 by Presidential proclamation, new opportunities appeared to exist for commercial development. The Minerals Management Service (MMS) of the Department of the Interior, which has the responsibility for managing the mineral resources on the Outer Continental Shelf (OeS) and the EEZ, responded by establishing an office specifically focused on the development of a marine minerals program. This office was originally named the Office of Strategic and International Minerals and has since been renamed the Office of International Activities and Marine Minerals (INTERMAR) to reflect a new responsibility for overseeing the international activities of the MMS. In addition to the establishment of the EEZ, the renewed interest in a domestic marine minerals industry reflects the strategic importance of certain minerals, the decreasing availability of supplies of construction aggregate onshore and in coastal waters, and the economic benefits that could be reaped domestically if a successful program were established. Recent developments have also identified a widespread need for large amounts of sand for environmental restoration projects. This paper addresses the possibilities for a domestic marine minerals program in the 21st century and the actions the Government should take to increase the chances of success. It explores the proper role of Government in providing the institutional framework that is necessary for the private sector to make investment decisions, including the removal of perceived obstacles to development. The success stories of other nations that have marine mineral programs may provide some examples. Defining a role for Government involves questions regarding the proper sharing of risk between Government and industry as well as an assessment of the strategic and economic importance of developing both minerals domestically and the required technology.