Christmas Is. Now Linked With Nauru and Ocean Is
pp. 43-45 · Read in the full issue
Ocean Is.
Details of Phosphate Purchase by Australia and New Zealand
DETAILS of the new arrangement, under which Australia and New Zealand will control the collection and distribution of phosphatic rock from Christmas Island, in the Indian Ocean, were given in the Australian Senate on October 27, when the Christmas Island Agreement Bill was passed.
The Governments of Australia and New Zealand have bought, for a sum of nearly £3,000,000 Sterling (over £3,600,000 Aus tralian) all rights to the phosphatic deposits on Christmas Island, as from January 1, 1949; and the new industry will be more or less controlled and operated by the British Phosphate Com mission, which collects and distributes the Nauru and Ocean Island phosphate.
In the course of a speech, the then Aus tralian Minister for Supply and Develop ment (Senator Armstrong) said that efforts had been made from time to time, since 1926, to acquire these rights from Christmas Island Phosphate Co.
Ltd., a private company incorporated in England. He proceeded: C CHRISTMAS Island, about 1,400 miles j north-west of Premantle, is an administrative dependency of the Colony of Singapore. It contains deposits of high-grade phosphate estimated at from 25,000,000 to 30,000,000 tons. Those de posits have been worked for more than 50 years by the Christmas Island Phos phate Co. Limited under a 99 years’ lease of the whole island, which was
granted to the company from Ist January, 1891.
Pre-war output of phosphate by the Co. was approximately 150,000 tons a year, most of which was sold to Japan. Since the war, supplies of this phosphate have been obtained for Australia and New Zealand to supplement supplies from Nauru and Ocean Island. Phosphate requirements of Australia and New Zea land are approximately 1,250,000 tons a year, expected to increase to 1,500,000 tons by 1951-52. Nauru, with a total deposits of 75,000,000 tons, and Ocean Island, with a total deposit of 12,000,000 tons, can supply approximately 1,300,000 tons a year. The Christmas Island de posits should supply the balance of requirements.
Under the agreement with the Christ mas Island Phosphate Co., the two gov ernments have jointly purchased the whole of the rights of the company in the undertaking at Christmas Island as at 31st December, 1948, including the un expired portion of the company’s lease which, at that date, had still 41 years to run. An amount of £2,750,000 sterling was paid by the two governments as joint purchasers in consideration for the sale. This price was subject to adjust ments in respect of capital expenditure incurred by the Co. after June 30, 1948, and also in respect of certain stock ad justments, which have since been effected with the company, involving a further sum of £142,695 sterling, bringing the
total purchase price up to £2,892,695 sterling.
Following the conclusion of the sale, consultations have taken place between the Australian and New Zealand Gov ernments as to future conduct of the undertaking at Christmas Island and agreement has been arrived at. The
purchase price and any additional moneys required for the working of the under taking will be provided by the two governments in equal shares. It is es timated that Australia’s contribution will be £1,500,000 sterling.
A SEPARATE commission, to manage and control the undertaking on behalf of the two governments, will con sist of three commissioners, of whom one is to be appointed by the Australian
Government, one by the New Zealand Government and one by the two gov ernments jointly. The British Phosphate Commissioners representing the Govern ments of the United Kingdom, Australia and New Zealand attend to the supply of phosphate for Australia and New Zealand and work the deposits on Nauru and Ocean Islands; but as the United Kingdom Government is not joined in the agreement for the purchase of Christmas Island deposits it will be necessary to establish a separate corn
mission to control this Christmas Island undertaking.
However, in view of the close connection between the working of the Christmas Island phosphate deposits and the act ivities of the British Phosphate Com missioners in regard to Nauru and Ocean Islands deposits, it is proposed to utilize the services of the British Phosphate Commissioners as managing agents of the Christmas Island undertaking and there by avoid unnecessary duplication of existing facilities and services. In anti cipation of the agreement to give effect to this arrangement, the British Phosphate Commissioners assumed con trol as managing agents of the under taking at Christmas Island from the Ist January, 1949.
Phosphate from Christmas Island will be disposed of in Australia and New Zealand in conjunction with phosphate supplied by the British Phosphate com missioners from Nauru and Ocean Islands, under agreements that will ensure, so far as practicable, the lowest possible cost.
In practice the Christmas Island phos phate will be delivered to the nearest fertilizer works in Australia, principally in Western Australia, thus releasing a corresponding tonnage of phosphate from Nauru and Ocean Islands for delivery to New Zealand.
The supply of ground phosphate from Christmas Island to Malaya previously arranged by the Christmas Island com pany will continue in accordance with the obligation taken over from the company, but the agreement provides that phosphate is not otherwise to be supplied to other countries outside Aust ralia and New Zealand except with the unanimous approval of the commissioners.
In common with the British Phosphate Commissioners the activities of the Christmas Island Phosphate Commission will be conducted on a non-profit basis, but any surplus funds which may be ac
cumulated as the result of the activities of the commission are to be shared equally between the two governments.
The addition of these Christmas Island deposits to the present holdings at Nauru and Ocean Islands, pursuant to the provisions of this bill, will ensure con tinuity of supplies of high-grade phos phate for Australian and New Zealand needs for many years to come.
The pre-war production of superphos phate at Christmas Island was 150,000 tons a year. That production has already been increased to 200,000 tons a year, and it is estimated that it will be increased to 250,000 tons by 1950. It is hoped that the deposits at Christmas Island will yield a maximum of 400,000 tons a year, and it is expected to achieve that target during the financial year 1951-52.