China signed a Contract with ISA to explore Ore Deposits in Indian Ocean

China on 18 November 2011 signed a contract with ISA (International Seabed Authority) to gain rights to explore polymetallic sulphide ore deposits in Indian Ocean over the next 15 years.

The exploration contract was signed between China Ocean Mineral Resources Research and Development Association and International Seabed Authority (ISA). ISA is an inter-governmental body with observer status in the United Nations.

Through this contract, the Chinese association won exclusive rights to explore a 10000 square kilometres of international seabed in the southwest Indian Ocean.

The Chinese association will have to give up 75 per cent of the ore deposit region within 10 years before it exercises pre-emptive rights of commercially mining the remaining 2500 square kilometres as per the contract.

 Moreover, the Chinese association will also have to conduct environmental monitoring, environmental baseline research and to train scientific workers for other developing countries.

This is the second time China has gained the right to explore an international seabed ore deposit. In 2001, China got the rights to mine a 75000 square kilometres area of international seabed for polymetallic nodule ore in the northeast Pacific Ocean.

The Directorate of Naval Intelligence (DNI) expressed its reservations to the Indian government about the contract. It could provide an excuse for China to operate its warships and compile data on the vast mineral resources in India's backyard.