The economy of Banaba and Nauru has been almost wholly dependent on phosphate, which has led to environmental disaster on these islands, with 80% of the islands’ surface having been strip-mined. The phosphate deposits were virtually exhausted by 2000, although some small-scale mining is still in progress on Nauru. Mining ended on Banaba in 1979.
The piece of phosphate used as a door stopMap of Banaba at the time of phosphate mining
In 1896, a cargo officer (supercargo) for the Pacific Islands Company on the Lady M, Henry Denson, found a strange-looking rock on Nauru during a brief stop on the island. He originally believed it to be a piece of petrified wood. Denson, according to legend, had planned on making children's marbles from it but, as fate would have it, it ended up as a door stop in the company's Sydney office.[1]
Chinese phosphate workers on Nauru standing between limestone pinnacles
In 1899, Albert Ellis, a management official of the phosphate division of the Pacific Islands Company, was transferred to the Sydney office to "analyse rock samples coming from the Pacific Islands." Ellis noticed the rock and suspected it to be phosphate (similar in appearance to the phosphate coming from Baker Island), but was rebuffed by Denson and told that it was only wood. Three months later, Ellis decided to test his hunch and tested the rock for phosphate. It turned out to be phosphate ore of the richest quality.[1][2]
A neighboring island to the East, Banaba (Ocean Island), shared Nauru's geology and also had significant reserves of phosphate.
MiningEdit
Phosphate mining in Nauru.
Ellis' discovery of phosphate excited John T. Arundel of the Pacific Islands Company and the company decided to pursue rights and access to Nauru's lucrative resource. The negotiations to pursue rights to the phosphate involved four parties: the British and German governments, the newly reorganised Pacific Phosphate Company, and Jaluit-Gesellschaft (a German mining company that had been exploiting phosphates on Nauru since the late 19th century).[2]
In 1906, an agreement was established whereby Jaluit-Gesellschaft's rights were transferred into the Pacific Phosphate Company, for "a cash payment of 2,000 pounds sterling (British), 12,500 pounds sterling (British) worth of shares in the Pacific Phosphate Company, and royalty payments for every ton of phosphate exported."[1]
In the first year of mining alone, 11,000 pounds (5,000 kg) of phosphate were shipped to Australia.[1] After World War I the interests of the Pacific Phosphate Company were acquired and the phosphate mining on Nauru was managed through a trust established between Britain, Australia and New Zealand.[1] Those governments established the British Phosphate Commissioners, who took over the rights to the phosphates.[1] From 1919 the responsibility for the welfare of the people of Nauru and Banaba, the restoring of land and water resources lost by mining operations and compensation for environmental damage to the islands was under the control of the governments of United Kingdom, New Zealand and Australia.[3] In June 1948, about 1,100 Gilbertese employed on Ocean Island refused to work, with the key demand of the strikers was for higher wages of £10 a month to meet the increased price of goods sold in the trade store.[4]
In 1968, Nauru became a sovereign, independent nation. In 1970, the newly formed government purchased the full rights to the phosphate business from Australia for A$21 million. This purchase brought an economic boost to the Republic, as revenues from the mining operations are estimated to have been A$100–120 million annually since independence through virtual resource exhaustion in the early 1990s. Gross production of phosphate from 1968 through exhaustion has been 43 million tons.[vague] In 1989, Nauru took legal action against Australia in the International Court of Justice over Australia's administration of the island, in particular Australia's failure to remedy the environmental damage caused by phosphate mining. Certain Phosphate Lands: Nauru v. Australia led to an out-of-court settlement to rehabilitate the mined-out areas of Nauru.[5][6]
The economic history of the Nauruan phosphate industry.
The government puts profits from the mining into a trust for the islanders. This trust reached a peak of A$1 billion, returning approximately 14% annually. Poor investments and corruption have left the trust fund nearly empty and therefore Nauru with little money.
In the year 1948, revenues from phosphate mining were A$745,000. A minuscule 2% (A$14,900) was being returned to the Nauruans, while 1% was being charged for "administration". In 1960, future president Hammer DeRoburt negotiated royalties of profit to the Nauruans to be 22% while administration would increase to 14%.[7]
One apparently successful development project was in 1988, whereby the Royalty Trust purchased 600 acres (2.4 km2) of vacant, residentially zoned land near Portland, Oregon. Purchased for $16 million from Homer Williams and called Forest Heights, it was controlled by the Nauru trust until 75% of the allotments were sold, when the homeowners association took over.[8][9][10]
^ abcdefMaslyn Williams & Barrie Macdonald (1985). The Phosphateers. Melbourne University Press. ISBN0-522-84302-6.
^ abEllis, Albert F. (1935). Ocean Island and Nauru; Their Story. Sydney, Australia: Angus and Robertson, limited. OCLC 3444055.
^ICJ Pleadings, Oral Arguments, Documents, Case Concerning Certain Phosphate Lands in Nauru (Nauru v. Australia) Application: Memorial of Nauru (January 2004) ISBN978-92-1-070936-1 (United Nations, International Court of Justice)
^"Gilbertese Strike on Ocean Island". XVIII(11) Pacific Islands Monthly. 18 March 1948. Retrieved 30 September 2021.
^Highet, K; Kahale, H (1993). . American Journal of International Law. 87 (2): 282–288. doi:10.2307/2203821. JSTOR 2203821. Archived from the original on 2011-05-11. Retrieved 2017-01-27.
^Case Concerning Certain Phosphate Lands in Nauru (Nauru v. Australia) Application: Memorial of Nauru. ICJ Pleadings, Oral Arguments, Documents. United Nations, International Court of Justice. January 2004. ISBN978-92-1-070936-1.
^Uniya Jesuit Social Justice Centre. . www.uniya.org. Archived from the original on 2005-10-23. Retrieved 2008-08-15.
^Joseph Gallivan (26 March 2019). "DIY developers in Forest Heights turn down millions". KOIN.com. Retrieved 19 November 2021.
^Nigel Jaquiss (29 July 2003). "HOMER'S ODYSSEY". Willamette Week. Retrieved 19 November 2021.
^. The Portland Tribune. www.portlandtribune.net. April 23, 2002. Archived from the original on January 9, 2008. Retrieved 2008-08-10.
SourcesEdit
Consuming Ocean Island: Stories of People and Phosphate from Banaba, by Katerina Martina Teaiwa, 2015, Indiana University Press, pp 272.
External linksEdit
Photographs of the mining
October 21, 2023
phosphate, mining, banaba, nauru, economy, banaba, nauru, been, almost, wholly, dependent, phosphate, which, environmental, disaster, these, islands, with, islands, surface, having, been, strip, mined, phosphate, deposits, were, virtually, exhausted, 2000, alt. The economy of Banaba and Nauru has been almost wholly dependent on phosphate which has led to environmental disaster on these islands with 80 of the islands surface having been strip mined The phosphate deposits were virtually exhausted by 2000 although some small scale mining is still in progress on Nauru Mining ended on Banaba in 1979 A ship being loaded with phosphate in Aiwo District Nauru Contents 1 First discovery of phosphate 2 Mining 3 Investments and finances 4 See also 5 References 6 Sources 7 External linksFirst discovery of phosphate Edit nbsp The piece of phosphate used as a door stop nbsp Map of Banaba at the time of phosphate miningIn 1896 a cargo officer supercargo for the Pacific Islands Company on the Lady M Henry Denson found a strange looking rock on Nauru during a brief stop on the island He originally believed it to be a piece of petrified wood Denson according to legend had planned on making children s marbles from it but as fate would have it it ended up as a door stop in the company s Sydney office 1 nbsp Chinese phosphate workers on Nauru standing between limestone pinnaclesIn 1899 Albert Ellis a management official of the phosphate division of the Pacific Islands Company was transferred to the Sydney office to analyse rock samples coming from the Pacific Islands Ellis noticed the rock and suspected it to be phosphate similar in appearance to the phosphate coming from Baker Island but was rebuffed by Denson and told that it was only wood Three months later Ellis decided to test his hunch and tested the rock for phosphate It turned out to be phosphate ore of the richest quality 1 2 A neighboring island to the East Banaba Ocean Island shared Nauru s geology and also had significant reserves of phosphate Mining Edit nbsp Phosphate mining in Nauru Ellis discovery of phosphate excited John T Arundel of the Pacific Islands Company and the company decided to pursue rights and access to Nauru s lucrative resource The negotiations to pursue rights to the phosphate involved four parties the British and German governments the newly reorganised Pacific Phosphate Company and Jaluit Gesellschaft a German mining company that had been exploiting phosphates on Nauru since the late 19th century 2 In 1906 an agreement was established whereby Jaluit Gesellschaft s rights were transferred into the Pacific Phosphate Company for a cash payment of 2 000 pounds sterling British 12 500 pounds sterling British worth of shares in the Pacific Phosphate Company and royalty payments for every ton of phosphate exported 1 In the first year of mining alone 11 000 pounds 5 000 kg of phosphate were shipped to Australia 1 After World War I the interests of the Pacific Phosphate Company were acquired and the phosphate mining on Nauru was managed through a trust established between Britain Australia and New Zealand 1 Those governments established the British Phosphate Commissioners who took over the rights to the phosphates 1 From 1919 the responsibility for the welfare of the people of Nauru and Banaba the restoring of land and water resources lost by mining operations and compensation for environmental damage to the islands was under the control of the governments of United Kingdom New Zealand and Australia 3 In June 1948 about 1 100 Gilbertese employed on Ocean Island refused to work with the key demand of the strikers was for higher wages of 10 a month to meet the increased price of goods sold in the trade store 4 In 1968 Nauru became a sovereign independent nation In 1970 the newly formed government purchased the full rights to the phosphate business from Australia for A 21 million This purchase brought an economic boost to the Republic as revenues from the mining operations are estimated to have been A 100 120 million annually since independence through virtual resource exhaustion in the early 1990s Gross production of phosphate from 1968 through exhaustion has been 43 million tons vague In 1989 Nauru took legal action against Australia in the International Court of Justice over Australia s administration of the island in particular Australia s failure to remedy the environmental damage caused by phosphate mining Certain Phosphate Lands Nauru v Australia led to an out of court settlement to rehabilitate the mined out areas of Nauru 5 6 A number of prominent Nauruans notably Rene Harris who have headed the Nauru Phosphate Corporation have gone on to serve as President of Nauru Investments and finances Edit nbsp The economic history of the Nauruan phosphate industry The government puts profits from the mining into a trust for the islanders This trust reached a peak of A 1 billion returning approximately 14 annually Poor investments and corruption have left the trust fund nearly empty and therefore Nauru with little money In the year 1948 revenues from phosphate mining were A 745 000 A minuscule 2 A 14 900 was being returned to the Nauruans while 1 was being charged for administration In 1960 future president Hammer DeRoburt negotiated royalties of profit to the Nauruans to be 22 while administration would increase to 14 7 One apparently successful development project was in 1988 whereby the Royalty Trust purchased 600 acres 2 4 km2 of vacant residentially zoned land near Portland Oregon Purchased for 16 million from Homer Williams and called Forest Heights it was controlled by the Nauru trust until 75 of the allotments were sold when the homeowners association took over 8 9 10 See also Edit1948 Nauru riots Banaba British Phosphate Commission Economy of Nauru Environmental impact of agriculture Nauru Phosphate Royalties Trust Pacific Phosphate Company Republic of Nauru Phosphate CorporationReferences Edit a b c d e f Maslyn Williams amp Barrie Macdonald 1985 The Phosphateers Melbourne University Press ISBN 0 522 84302 6 a b Ellis Albert F 1935 Ocean Island and Nauru Their Story Sydney Australia Angus and Robertson limited OCLC 3444055 ICJ Pleadings Oral Arguments Documents Case Concerning Certain Phosphate Lands in Nauru Nauru v Australia Application Memorial of Nauru January 2004 ISBN 978 92 1 070936 1 United Nations International Court of Justice Gilbertese Strike on Ocean Island XVIII 11 Pacific Islands Monthly 18 March 1948 Retrieved 30 September 2021 Highet K Kahale H 1993 Certain Phosphate Lands in Nauru American Journal of International Law 87 2 282 288 doi 10 2307 2203821 JSTOR 2203821 Archived from the original on 2011 05 11 Retrieved 2017 01 27 Case Concerning Certain Phosphate Lands in Nauru Nauru v Australia Application Memorial of Nauru ICJ Pleadings Oral Arguments Documents United Nations International Court of Justice January 2004 ISBN 978 92 1 070936 1 Uniya Jesuit Social Justice Centre View on Nauru Between a mined out rock and a hard place www uniya org Archived from the original on 2005 10 23 Retrieved 2008 08 15 Joseph Gallivan 26 March 2019 DIY developers in Forest Heights turn down millions KOIN com Retrieved 19 November 2021 Nigel Jaquiss 29 July 2003 HOMER S ODYSSEY Willamette Week Retrieved 19 November 2021 Island nation holds keys to neighborhood The Portland Tribune www portlandtribune net April 23 2002 Archived from the original on January 9 2008 Retrieved 2008 08 10 Sources EditConsuming Ocean Island Stories of People and Phosphate from Banaba by Katerina Martina Teaiwa 2015 Indiana University Press pp 272 External links EditNauru on the verge of bankruptcy Photographs of the mining Retrieved from https en wikipedia org w index php title Phosphate mining in Banaba and Nauru amp oldid 1148117694, wikipedia, wiki, book, books, library,
