1S5 



sampling equipment will be of cruciul im- 

 portance to the success both of Government 

 geophysical and geologic survey activities 

 and of tlie mining intlustrys investigations 

 of the economic potential of specific deposits. 

 Pi-esent technology for such activities is now 

 wholly inadequate in cost and performance. 

 New sensors and platforms are needed for di- 

 rect and infei-red observations of sediment 

 structure, rock types, outcrops, and faults. 

 Seismic, electric, magnetic, and optical sen- 

 sors are now in use or under development to 

 sui)i)lempnt the older metliods of mapping, 

 laiving samples, and coring. Computer tech- 

 niques are coming into use to analyze data 

 and to project the most likely targets for 

 investigation. 



The potential for developing less costly 

 exploration teclniology, however, is quite 

 promising, and in tlie Commission's view, the 

 value of the resources potentially available 

 justifies tiie etl'ort to develop the technology. 

 As in the case of , the reconnaissance survey 

 work and for the same reason, the Govern- 

 ment nuist help develop the new technology. 

 Identification of fundamental technology 

 proi)lems meriting investigation and develop- 

 ment of tools and instrumentation required 

 for exploration should be undertaken jointly 

 iietween the private sector and the Federal 

 Government in a properly coordinated 

 program. 



The Commission recommends that strong 

 Federal support be provided for a pro- 

 gram to advance the fundamental tech- 

 nology relevant to marine minerals 

 exploration and recovery. Government and 

 industry should work in close cooperation 

 to develop more rapid geophysical explo- 

 ration tools and improved marine sam- 

 pling equipment. The Government should 

 have the function of testing new tools and 

 equipment developed mainly by private 



industry and in cooperation with industry 

 should be responsible for setting stand- 

 ards for the mining industry. 



Legal and Regulatory Considerations 



The geographic areas of greatest immedi- 

 ate concern to tlie F.S. mining interests fall 

 clearly within either State or Federal juris- 

 diction. The industry's contention, vigorously 

 presented to the Commission, is that the com- 

 petitive procedures of the 1953 Outer Con- 

 tinental Shelf Lands Act are inappropriate 

 and tliat the Act is not attuned to the unique 

 problems likely to be encountered in develop- 

 ing marine minerals, which will require 

 major investments .in exploration and I'e- 

 covery under conditions of very high risk. 

 Specifically, industry urges that a firm which 

 discovers connnercially exploitable deposits 

 should have the privilege of developing these 

 deposits, subject to stipulated terms and con- 

 ditions, without bidding for the privilege. 



The ratio of exploration costs to potential 

 profit, the industry points out, looms much 

 larger with most hard minerals than with 

 oil. Althovigh statistical data are woefully in- 

 adequate, the ratio of targets explored to de- 

 posits discovered ashore may be as great as 

 1,000: 1, and the ratio may be higher in the 

 offshore environment. Exploration of the 

 shelf for hard mineral deposits will be a very 

 high risk speculation for tlie foreseeable fu- 

 ture, and mineral explorers will need strong 

 incentives to apply their energy and skills in 

 an activity in which good fortune is also 

 required. Most important mineral commodi- 

 ties are products of world trade, and a min- 

 eral develoi)er must evaluate any exploration 

 venture in the light of the world market. The 

 developer nuist weed out prospects with low 

 geologic or ecoiK)mic potential and concen- 

 trate on the most promising. Favorable land 

 and ocean mining laws of other countries 



