Deep sea mining is a new and untested premise, one that attracts considerable risks both to the oceans and countries supporting such activities. As we can see from the commercial agreement being entered into, countries are also exposing themselves to the risks of international arbitration in pro-investor courts that can challenge the sovereign decision-making space of governments, shrinking their ability to shape and influence the actions of investors or new mining activities.
This memorandum examines the implications for the Kingdom of Tonga of the investor rights conferred on the Tonga Offshore Mining Ltd (TOML) in the Sponsorship Agreement, rights that are enforceable through arbitration under the United Nations Commission on International Trade Law (UNCITRAL) Rules, with Singapore as the seat of arbitration and as the prevailing law.