PHOSPHATE SUPPLIES.
SHIPMENTS FROM NAURU ISLAND.
REPLY TO INQUIRIES. Some questions regarding the supply of phosphate, rock from Nauru Lflanci were put to the Acting-Prime Minuter (Sir Francis Bell) a few days ago by Mr. J. P. Luke, M.P., of Wellington. The following reply has been forwarded to Mr. Luke by the Minister of Agriculture:—
“Your letter of May 18 to the Hon. Sir Francis Bell, in which you ask for information in regard to the Nauru Island phosphate deposits and New Zealand’s interests in them, has been referred to me.
“There is apparently a misapprehension in regard to the mandate which should be cleared up. Nauru Island was one of the former German possessions mandated to the British Empire under the general terms relating to mandates set out in the Peace Treaty. The phosphate deposits on the island, wefe, however, the property of a British company (the Pacific Phosphate Company), acquired under a deed of agreement from a German concessionaire some years before the war. The result of the war did not affect the rights of this company and the three Governments of Great Britain, Australia, and New Zealand, as being most directly interested in securing supplies of phosphate from this source, decided to purchase the company’s rights and acquire the deposits for the benefit of -their respective coun- ! tries.
“The Nauru Island agreement was drawn up by the three Governments, and it is under this agreement, and not under the mandate that the allocation of the output of phosphate was fixed on the percentage basis referred to in your letter, a percentage basis arrived at in exact proportion to the amount of the purchase money found by the respective Governments. ' It is important to remember that New Zealand’s right in the phosphate deposits of Nauru were acquired by purchase, and not by mandate. The Pacific Phosphate Company also owned rights over the deposits in Ocean Island, a British possession, and these were also acquired by the three Governments, and New Zealand is entitled to a similar share of the output from this island.
The output from both islands depends greatly on the weather as affecting loading operations. With the existing plant up to 500.000 tons per annum can be handled. The average output before the war was about 400,000 tons per anniim. New Zealand is entitled to 16 per cent, of the output, but if any one of the three countries does not require its full quota the balance is to be offered first to the other countries. The present position is that by arrangement with the British authorities the British Phosphate Commissioners for Nauru and Ocean Islands have contracted to supply practically the whole of the British quota for a year ahead. Australia is likely to require her full quota; indeed, she will probably want more. The Commissioners will supply New Zealand’s full requirements up to her quota, but circumstances have made it difficult to state our requirements exactly. “During the war Australia and New Zealand were obtaining large quantities of phosphate rock from the Pacific Phosphate Company. Shipping considerations at that time made it easier for our requirements to be obtained from Makatea Island, worked by a French company, but over the output of. which the Pacific Phosphate Company had certain options. Contracts were made ahead and under these supplies of Makatea rock have been received up to this year. These obligations entered into have restricted the demand for NauruOcean Island phosphate during this year, and tlie financial stringency and the j fact that large importations of fertil-! isers have been made, have added to the uncertainty of the situation. However, a shipment of nearly 5000 tons of phosI phate rock from Nauru was received in I March last, and another cargo of 4000 tons from Ocean Island is due to leave shortly. Other cargoes are under negotiation for the second half of the year, and next year it ii expected that the demand will assume a normal level. The price of the phosphate rock in the incoming shipment is 81s per ton c.if. “The Government has gone into the question of grinding the rock, and has obtained much information as to suitable types of plants. It has to be recognised that between the time the rock arrives in bulk at the wharf and the time of sale as ground phosphate there are heavy charges for handling, railing, grinding, etc. Ground phosphate must be very finely ground if the best results are to* be obtained from its use. As indicating the extra cost of this it may be mentioned that the output from the grinding mills drops to one-third when grinding fine as compared with grinding for the manufacture of superphosphate. “As has been stated already by the Prime Minister in Parliament, the Government is prepared to erect grinding works if farmers are unable to get full supplies at reasonable prices. At present there already exist very well equipped grinding plants which are likely to be able to meet the immediate demand. Already a considerable reduction iu the price of ground phosphate has ‘been announced, and the Government is keeping in close touch both with the demand from, farmers and the price charged.”
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Taranaki Daily News, 23 May 1921, Page 5
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867PHOSPHATE SUPPLIES. Taranaki Daily News, 23 May 1921, Page 5
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