Policy Considerations Related To Future Marine Minerals Developments Off Hawai'i

Hawai'i is surrounded by a series of potentially valuable marine mineral deposits. These include manganese nodules between Hawai'i and Mexico, cobalt-rich manganese crusts and phosphorites in the Exclusive Economic Zone around the Hawaiian Island Archipelago, Johnston Island and the neigh- boring island states and sand and gravel deposits off the main Hawaiian Islands largely in State waters. Hawai'i has an economy that is very narrowly based on the tourist industry. In an effort to avoid the difficulties coming from such a vulnerable economy, significant efforts have been made toward economic diversification. The State has set up a range of programs looking to find new industries. New ocean industries figure prominently among these efforts as Hawai'i is surrounded by ocean. Naturally, among new ocean industries the potential for new marine mineral industries is significant given that Honolulu is the only full service port in the Central Pacific and Hawai'i is in the middle of the mineral belt. The port of Honolulu is now being actively used by mineral exploration vessels of several countries and with the current number of ship visits varying from 10-15 per year, this puts several million dollars a year into the State economy. It helps to fulfill the State's goal of dynamic growth in the ocean sector of the economy. Nonetheless, a major marine minerals industry, particularly one which would involve processing of minerals in Hawai'i, is controversial in a State whose main source of revenue is tourist expenditures based on the image of a pristine environment. In addition to the perceived threat to the hotel and fishing industry, is the whole highly emotional debate concerning preservation and development. To complicate the issue further, the major interest in developing a marine minerals is currently largely from Korea and China rather than from domestic U.S. industry. On the other side of the debate is the fact that the State's economy is hampered by many low paying jobs and a lack of technical jobs. This is further exacerbated by the fact that lower paying jobs are held disproportionately by people of Hawaiian and Pacific Island ancestry. Naturally, this leads over time to a certain amount of resentment. The higher paying technical lobs associated with a minerals processing industry could help to alleviate this problem.