Internship ReportSamoa and ProstratinPapua New Guinea and Nautilus

Copyright M-CAM 2008. Confidential.

But Brice, why? Profit is hollow without community benefit How do you make doing good profitable?

How should policy change? A 2-year LDS mission in Brazil helped

condense “us” and “them” to just “us” Prostratin production in Samoa benefits

everyone Environmentally destructive mining is not

sustainable

Samoa and Prostratin

Pharmaceutical Plant Recommendations

Background Prostratin is an extract from the Samoan Mamala

tree that can be used to fight HIV/AIDS. An American talked to Samoan traditional healers;

eventually the US NIH ended up with a patent for Prostratin. The traditional healers were not listed as inventors.

The NIH granted an exclusive license to ARA to develop Prostratin. They agreed to share 20% of their license revenues with Samoa.

Prostratin has less than 6 years of patent duration left and is still not in clinical trials. Revenue for Samoa now seems unlikely.

International Law CBD: Encourages preserving and sharing

biodiversity. Countries with biological resources should participate in researching and developing those resources. Poor countries should receive beneficial access to the results.

TRIPS: Globalizes patent protection, including on biological derivatives.

Direct agreements: Samoa has revenue sharing agreements with ARA and UC Berkley (who have a patent on microbial Prostratin production)

Action Correct the original patent to list the traditional

healers as inventors: Epenessa Mauigoa, Paela Lilo, and Lemau Seumanutafa

Monitor new patents to set up revenue sharing agreements and make sure the Samoan contribution is cited

Build a pharmaceutical plant in Samoa to produce Prostratin. This allows Samoa to gain at least some economic benefit.

Pharma Plant Details Location: Vaisigano district of Samoa Cost: $10M to $60M Funding: Grants and loans from the Samoan government,

New Zealand and Australia, CBD, WHO, US government, AIDS groups, and World Bank

Revenue: Sell Prostratin at cost to LDCs and at 2-4x to wealthier countries

Profits depend on dosing but could be in the tens of millions per year

Reinvest in biodiversity, local production capacity, repayment of any loans, and compensation for the families who discovered Prostratin.

Papua New Guinea (PNG) and Nautilus

Undersea MiningOverview and Recommendations

Nautilus Overview CEO David Hoyden, long history of mining

Zinc mining in the Australian outback Found gold deposits in Indonesia by asking locals where

they got their gold necklaces Bought out partner Malnic in 2002. (Malnic had claim-

jumped Binns, who originally discovered the PNG black smokers).

Funds raised: $334M since going public Expected profits: ~$500M per year Major investors: Teck Cominco / Anglo American

Nautilus Mining Overview Only active polymetallic sulfide miner PNG, then other EEZ waters (Tonga, Fiji, SI,

NZ), then international waters Subsea vents spew 350°C water into the

ocean, metals precipitate into wide beds Basic process: find the vents, dig up the

beds, pump the slurry to the surface, pour out the water, ship the ore to land, and process it

http://www.isa.org.jm/files/documents/EN/Workshops/Jul06/DHeydon.pdf

Mining in PNG Major player: ~25% GDP, ~75% exports Few jobs or benefits go to locals Exploitation led to civil war on one island,

leading to a further weakened government Well known lax oversight – World Bank

projects are improving it slightly Significant corruption and a history of

resource exploitation make change slow

Environmental Impacts: Land Mining

Riverine tailings dumping Submarine tailings disposal Open hazardous materials Killings of villagers

Possible Environmental Impacts:Deep Ocean Mining Possible eradication of vent species due to

disruptions Sediment disruption, absorption, and spills Water return Continuous ore barge operations Land ore processing – likely to use existing

practices Nautilus position

Recommendations Leverage the fishing industry

Aligned with or against Nautilus

Discover & suggest environmental monitoring IP using DOORS

Encourage regulatory changes in PNG Adopt ISA-type guidelines Audit benthic video and full process Require maintenance of % of biodiversity