Phosphate mining in Banaba and Nauru
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.
First discovery of phosphate
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]
In 1899,
A neighboring island to the East, Banaba (Ocean Island), shared Nauru's geology and also had significant reserves of phosphate.
Mining
Ellis' discovery of phosphate excited
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
In the first year of mining alone, 11,000
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
Investments and finances
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
- 1948 Nauru riots
- Banaba
- British Phosphate Commission
- Economy of Nauru
- Environmental impact of agriculture
- Nauru Phosphate Royalties Trust
- Pacific Phosphate Company
- Republic of Nauru Phosphate Corporation
References
- ^ ISBN 0-522-84302-6.
- ^ OCLC 3444055.
- 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.
- JSTOR 2203821. Archived from the originalon 2011-05-11. Retrieved 2017-01-27.
- 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
- Consuming Ocean Island: Stories of People and Phosphate from Banaba, by Katerina Martina Teaiwa, 2015, Indiana University Press, pp 272.