John T. Arundel - Pacific Phosphate Company Ltd

Pacific Phosphate Company Ltd

In 1889 Albert Ellis made what he later described as “a good ‘find’”, when he had laboratory analysis carried out on a rock that was used to prop open the Sydney office door, as it appeared similar to the hard phosphate rock that he had seen on Baker Island The laboratory analysis confirmed that the rock was high grade phosphate. Albert Ellis and other company employees travelled to Banaba to confirm that the soil of that island was largely phosphate rock. A. F. Ellis went on to Nauru, at that time a German territory and confirmed it also consisted of large deposits of phosphate rock.

J. T. Arundel and Lord Stanmore were responsible for financing the new opportunities and negotiating with the German company that controlled the licences to mine in Nauru. In 1902 the interests of PIC were merged with Jaluit Gesellschaft of Hamburg, to form the Pacific Phosphate Company, (‘PPC’) to engage in phosphate mining in Nauru and Banaba, then known as Ocean Island. The company’s engineers had to find solutions for transferring the phosphate rock from the island to ships that had to anchor off the island. As high islands both Nauru and Banaba did not have lagoons or anchorages that protected ships from the Pacific storms. Solutions were found and despite losing some 5 ships on the reef at Ocean Island, the PPC became a very profitable company. The profitability of the company directed attention to the original agreements made with the land owners of Nauru and Banaba. The agreement with the Banabans was for the exclusive right to mine for 999 years for £50 a year. The terms of the licenses were changed to provide for the payment of royalties and compensation for mining damage.

The PPC investigated phosphate deposits on Makatea in the Tuamotus in French Polynesia and formed a company, the Compagnie des Phosphates de l'Océanie, with a Tahitian syndicate that was also investigating the potential of Makatea. This gave the PPC a virtual monopoly on the sources of high grade phosphate in the Pacific.

In 1919 the business of the PPC in Nauru and Banaba was acquired by Board of the British Phosphate Commission. 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.