British Phosphate Commission
Encyclopedia
The British Phosphate Commission (BPC) was a board of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

n, British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 representatives who managed extraction of phosphate from Christmas Island
Christmas Island
The Territory of Christmas Island is a territory of Australia in the Indian Ocean. It is located northwest of the Western Australian city of Perth, south of the Indonesian capital, Jakarta, and ENE of the Cocos Islands....

, Nauru
Nauru
Nauru , officially the Republic of Nauru and formerly known as Pleasant Island, is an island country in Micronesia in the South Pacific. Its nearest neighbour is Banaba Island in Kiribati, to the east. Nauru is the world's smallest republic, covering just...

 and Ocean Island
Banaba Island
Banaba Island , an island in the Pacific Ocean, is a solitary raised coral island west of the Gilbert Island chain and 300 km east of Nauru. It is part of the Republic of Kiribati. It has an area of 6.5 km², and the highest point on the island is also the highest point in Kiribati, at 81...

 from the 1920s until the 1960s.

Nauru Island Agreement

Following its defeat in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, Germany was forced to relinquish all of its territorial assets around the world, including the island of Nauru. Nauru then came under joint trusteeship of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

, and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

.

In 1919, the three trustees signed the Nauru Island Agreement, which entitled them to the phosphate of Nauru
Phosphate mining in Nauru
The economy of Nauru has been almost wholly dependent on phosphate, which has led to environmental catastrophe on the island, with 80% of the nation’s surface having been strip-mined...

 through the British Phosphate Commissioners.

B.P.C. Payments to Nauruans

Under a policy established under the German administration, royalty payments were given to landowners. In 1921, the British Phosphate Commissioners (under pressure from the Nauruan people) increased royalty payments from one-half penny to one and one-half pence per ton of phosphate extracted.

In 1927, a new agreement was reached, giving the Nauruans seven and one-half pence per ton.

By 1939, Nauruans were receiving 9% of the phosphate revenues. This amount is still somewhat insignificant because at this time, Nauruan phosphate was selling far below world market prices.

Profits

Throughout B.P.C. control, significant profits were made. In 1948, revenues of $745,000 were made.

Transfer of Ownership

In 1967 the Nauruans purchased the assets of the B.P.C. and in 1970, the newly independent Republic of Nauru established the Nauru Phosphate Corporation
Nauru Phosphate Corporation
The Nauru Phosphate Corporation was a government-owned company controlling phosphate mining in Nauru, now known as the Republic of Nauru Phosphate, or RONPhos.-Failed investments:...

.

Litigation

In 1965, the Banaban islanders, after decades of land disputes, royalty fees, and "exploitation," started legal litigation against the British Phosphate Commissioners in British court. After more than a decade, the case finally came to an end, with the Banabans only being awarded £1 and were still made to pay their own legal fees of more than ₤UK300,000.

The Australian government through the B.P.C. offered £UK780,000 in reparations.

Christmas Island Phosphate Company

The first European to mine phosphate for commercial exploitation was Sir John Murray, a British naturalist, who was granted a land lease in 1888. Under the Christmas Island Phosphate Company, LTD (CIPC), mining was commenced in 1897.

Christmas Island and the B.P.C.

Under the CIPC, mining was carried out continually from 1897 through 1981, whence mining was carried out under agreement with the British Phosphate Commission, which was also associated with the governments of Australia and New Zealand.

Post B.P.C. Mining

In 1981, the Phosphate Mining Company of Christmas Island (PMCI), a government company, took over mining operations. This arrangement was carried out until December 1987 when the company was disbanded. The mining operation was then taken over by the Union of Christmas Island Workers
Union of Christmas Island Workers
The Union of Christmas Island Workers is a trade union in Christmas Island, the non self-governing territory of Australia. It represents workers on the island, and is affiliated with the Australian Council of Trade Unions.-External links:...

.

Further reading

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