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British Phosphate Commission
The British Phosphate Commissioners (BPC) was a board of Australian, British, and New Zealand representatives who managed extraction of phosphate from Christmas Island, Nauru, and Banaba (Ocean Island) from 1920 until 1981.
Nauru was a mandate territory governed on behalf of Nauru by Australia, Britain and New Zealand. However, representatives on the Permanent Mandates Commission argued that the activities of the BPC on Nauru were exploitative and not to the benefit of Nauruans. Australia intentionally suppressed information about its activities in Nauru. In 1968, Nauru brought Australia up before the International Court of Justice over the environmental devastation that they had caused on Nauru.
In 1900, the German colonial administration of Nauru granted phosphate rights to British businessman John T. Arundel's Pacific Islands Company (PIC). The PIC was replaced by the Pacific Phosphate Company (PPC) in 1902, with German interests holding around one-third of the company's share capital. Production commenced in 1906, largely relying on indentured labour, with Australia and New Zealand as the primary markets. In 1914, following the outbreak of the First World War, the Australian Naval and Military Expeditionary Force occupied Nauru, with an agreement reached whereby the Australian military would assume administrative control of the island and the PPC would continue phosphate operations.
Following the end of the war, Nauru was made a League of Nations mandate under the joint trusteeship of Australia, New Zealand and the United Kingdom, with Australia retaining administration of the island. In 1919, the three trustees signed the Nauru Island Agreement, which entitled them to the phosphate of Nauru through the British Phosphate Commissioners. They bought back all the assets of the PPC for more than 3.5 million pounds on 1 July 1920, and started to manage it directly on 1 January 1921, after a six-month transition period of PPC management. Most of PPC's former employees were retained by the BPC.
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.
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 pence 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.
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British Phosphate Commission
The British Phosphate Commissioners (BPC) was a board of Australian, British, and New Zealand representatives who managed extraction of phosphate from Christmas Island, Nauru, and Banaba (Ocean Island) from 1920 until 1981.
Nauru was a mandate territory governed on behalf of Nauru by Australia, Britain and New Zealand. However, representatives on the Permanent Mandates Commission argued that the activities of the BPC on Nauru were exploitative and not to the benefit of Nauruans. Australia intentionally suppressed information about its activities in Nauru. In 1968, Nauru brought Australia up before the International Court of Justice over the environmental devastation that they had caused on Nauru.
In 1900, the German colonial administration of Nauru granted phosphate rights to British businessman John T. Arundel's Pacific Islands Company (PIC). The PIC was replaced by the Pacific Phosphate Company (PPC) in 1902, with German interests holding around one-third of the company's share capital. Production commenced in 1906, largely relying on indentured labour, with Australia and New Zealand as the primary markets. In 1914, following the outbreak of the First World War, the Australian Naval and Military Expeditionary Force occupied Nauru, with an agreement reached whereby the Australian military would assume administrative control of the island and the PPC would continue phosphate operations.
Following the end of the war, Nauru was made a League of Nations mandate under the joint trusteeship of Australia, New Zealand and the United Kingdom, with Australia retaining administration of the island. In 1919, the three trustees signed the Nauru Island Agreement, which entitled them to the phosphate of Nauru through the British Phosphate Commissioners. They bought back all the assets of the PPC for more than 3.5 million pounds on 1 July 1920, and started to manage it directly on 1 January 1921, after a six-month transition period of PPC management. Most of PPC's former employees were retained by the BPC.
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.
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 pence 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.