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Nauru Case Study

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Nauru Case Study
TED Case Studies
Case Number: 412
Case Mnemonic: NAURU
Case Name: PHOSPHATE MINING IN NAURU
Case Author: Michael E. Pukrop, May, 1997

* IDENTIFICATION * LEGAL CLUSTERS * GEOGRAPHIC CLUSTERS * TRADE CLUSTERS * ENVIRONMENT CLUSTERS * OTHER FACTORS

I. Identification
1. The Issue
The mining of phosphate on the island of Nauru, located in a remote corner of the Pacific Ocean, has devastated the island environmentally and has created financial, legal, and cultural problems for the islanders. The phosphate is used as a fertilizer around the world and the majority of it has been exported to Australia. The mineral is located among the ancient coral reefs found underground. Mining the phosphate, however, destroys the vegetation and soil of the island. Phosphate is the primary basis for the economy, and with the depletion of the mineral, Nauru is left with nothing to trade. Thus, the island faces virtual economic collapse. Today, Nauru's problems are becoming increasingly acute, as the phosphate on the island has been exhausted, and mining has virtually ceased. As such, the government of Nauru is looking into the question of responsibility for the ecological disaster raging on the island, and is looking into ways to rehabilitate the island.
2. Description
This section contains nine parts: history, phosphate, damage, people, culture, economics, legal issues, settlement, and the future.

HISTORY:
The story begins in 1908, when the Germans, then in control of Nauru, began to mine the large deposits of phosphate located there. The island fell into the hands of the Australians after their soldiers liberated Nauru in the early months of World War I. The League of Nations subsequently set up a mandate system than Australia, Great Britain, and New Zealand administered together. These three states then set up the British Phosphate Commissioners to deal with the mining operation. In 1942, the Germans seized and occupied Nauru. After World War

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