Nauru Phosphate Corporation
Encyclopedia
The Nauru Phosphate Corporation (NPC) was a government-owned company controlling phosphate mining in Nauru
, now known as the Republic of Nauru Phosphate, or RONPhos.
in Melbourne
and Hawaiki Tower in Honolulu. These luxury properties were only part of an international real estate portfolio that stretched into countries including Australia, the Philippines, Fiji, Guam, Samoa, the United States of America, New Zealand, and the United Kingdom.
Financial mismanagement and extravagant government spending (i.e.: investing AU$4 million in a London play, Leonardo, about Leonardo DaVinci's love life which "flopped" after weeks of bad reviews) led to increased spending, and increased loans, which were levied upon the real estate holdings of the Nauru Phosphate Royalties Trust. One loan, of AU$236 million from General Electric
, which was used as a loan to pay off all other loans, could not be paid by the government. This led to G.E. seizing Nauru's international real estate developments, including the trademark Nauru House in Australia.
and Tuvalu
.
On 1 July 2005, during a managerial restructuring, the Nauru Phosphate Corporation formally changed its name to the Republic of Nauru Phosphate Corporation to signal change. Today, RONPhos currently employs 20.4% of the working population of the Republic of Nauru.
Although the initial layer of phosphate has been mined out (approximately 100 million tones), a secondary level of phosphate is believed to exist, holding nearly 20 million tones of minable resources. RONPhos is beginning to develop plans for their economical extraction.
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...
, now known as the Republic of Nauru Phosphate, or RONPhos.
Failed investments
In the early years of the Nauru Phosphate Royalties Development Trust, construction of two of five hi-rise luxury condos in Hawaii, on the island of Oahu have been built. The five towers (two completed as of 10/05) are located on prime Honolulu real estate with ocean views, and represent a benchmark in Honolulu luxury high-rises. Other investments included Nauru HouseNauru House
Nauru House is a landmark 52-story building located in the Melbourne CBD. The building was designed by architectural firm Perrott Lyon Timlock & Kesa-History:...
in Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
and Hawaiki Tower in Honolulu. These luxury properties were only part of an international real estate portfolio that stretched into countries including Australia, the Philippines, Fiji, Guam, Samoa, the United States of America, New Zealand, and the United Kingdom.
Financial mismanagement and extravagant government spending (i.e.: investing AU$4 million in a London play, Leonardo, about Leonardo DaVinci's love life which "flopped" after weeks of bad reviews) led to increased spending, and increased loans, which were levied upon the real estate holdings of the Nauru Phosphate Royalties Trust. One loan, of AU$236 million from General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, which was used as a loan to pay off all other loans, could not be paid by the government. This led to G.E. seizing Nauru's international real estate developments, including the trademark Nauru House in Australia.
RONPhos
Following the collapse of phosphate mining in 2002 due to virtual exhaustion of minable resources, repatriation of many foreign workers began. From 2004 to 2005, the foreign workers were reduced from 1,478 to 470. Most of the workers were from KiribatiKiribati
Kiribati , officially the Republic of Kiribati, is an island nation located in the central tropical Pacific Ocean. The permanent population exceeds just over 100,000 , and is composed of 32 atolls and one raised coral island, dispersed over 3.5 million square kilometres, straddling the...
and Tuvalu
Tuvalu
Tuvalu , formerly known as the Ellice Islands, is a Polynesian island nation located in the Pacific Ocean, midway between Hawaii and Australia. Its nearest neighbours are Kiribati, Nauru, Samoa and Fiji. It comprises four reef islands and five true atolls...
.
On 1 July 2005, during a managerial restructuring, the Nauru Phosphate Corporation formally changed its name to the Republic of Nauru Phosphate Corporation to signal change. Today, RONPhos currently employs 20.4% of the working population of the Republic of Nauru.
Although the initial layer of phosphate has been mined out (approximately 100 million tones), a secondary level of phosphate is believed to exist, holding nearly 20 million tones of minable resources. RONPhos is beginning to develop plans for their economical extraction.
See also
- British Phosphate CommissionBritish Phosphate CommissionThe British Phosphate Commission was a board of Australian, British and New Zealand representatives who managed extraction of phosphate from Christmas Island, Nauru and Ocean Island from the 1920s until the 1960s.-Nauru Island Agreement:...
- Economy of NauruEconomy of NauruRevenues of Nauru have traditionally come from exports of phosphate rock. Primary phosphate reserves were exhausted, and mining ceased, but in 2006-07, mining of a deeper layer of "secondary phosphate" began. It is hoped that this economic activity might lift Nauru from the bottom rung of global...
- Nauru Phosphate Royalties TrustNauru Phosphate Royalties TrustThe Nauru Phosphate Royalties Trust was a sovereign wealth fund developed by the government of the Republic of Nauru in which the government invested money from the state owned mining company, Nauru Phosphate Corporation...
Further reading
- Paradise for Sale (Book) Authored by Carl N. McDaniel & John M. Gowdy (Univ. of California Press; 2000) Information regarding current state of RONPhos. Retrieved 20 August 2008.