The exploration and exploitation of mineral resources in areas of national jurisdiction

Abstract

As the world economic system become more globalized, issues of individual state control over economic activities that transcend national boundaries get increasingly marginalised. This globalization entails economic transactions and multinational joint ventures of huge magnitude and complex characteristics that can not be governed by national laws per se. In a narrower sense, the exploration and exploitation of mineral resources as a branch of global economic activities is also transnational in nature and cannot but be governed by legal frameworks that are internationalized or in the least, universally compatible in nature. The exploration and exploitation of mineral resources is particularly complex by the nature of distribution or location of these resources. The fact that the larger percentage of world mineral resources are deposited within national jurisdiction of countries who lack the indigenous capital, technology and management inputs necessary to explore and exploit these resources has implications for the legal environment. Even more, the fact that improvements in modern technology, continue to be concentrated in the hands of the developed industrialized countries, while the third world countries have benefited little from technological transfer, makes the exploration and exploitation of resources dependent largely on foreign technology. The consequence is that internationalising the legal frameworks for the exploration and exploitation of resources in view of the multinational interests involved become expedient. The picture that emerges from this curious resources-technology relationship is that the developed industrialized countries depend on foreign access to resources deposits. While equally the resources-rich countries depend on foreign technology and capital to maximize returns from their resources. This mutual interdependence requires a legal balance that recognises the rights of the resources owners as well as the rights and interests of the foreign technology and capital investors.