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Income from the export of phosphate has been the main source of revenue for Nauru since World War II.
Phosphate was discovered accidentally in Nauru just after 1900 and mining commenced in 1907 with the establishment
of the Pacific Phosphate Company (a German-British consortium). The British Phosphate Company (owned jointly by
the governments of United Kingdom, Australia and New Zealand) purchased the company in 1920 and continued operations
until 30 June 1970 when control passed to the Nauru Phosphate Corporation.
Phosphate production has been in decline since 1991 as demand fell in traditional markets because of the
level of cadmium present and as the cost of extracting the diminishing phosphate supply increased.
Estimates indicate that some 10,000,000 mt of phosphate remain, which at the current rate of extraction
would suggest that operations could come to an end by 2005.
Apart from phosphate, fishing licenses issued to China, Japan, Korea, Taiwan and the US, are an
important source of revenue for Nauru. Game fish abound in Nauruan waters.
An attempt was made in the past to establish a milk fish farm for the supply of bait for long line fishing of
sashimi-grade tuna for export to Japan, but the enterprise stopped with the withdrawal of the commercial partner.
Nauru is dependent on shipping and air services for the provision of food
and other supplies, notably from Australia. It has no natural port but has deep-water anchorages
served by a cantilever system for loading phosphate and discharging fuel and water supplies, and by
lighters for unloading other cargo. These port facilities have been supplemented by the construction
of a small boat harbour in Anibare Bay in September 2000, with funding from the Japanese Fisheries
Department, with a view to its future development as a second commercial anchorage.
The only commercial air service to and from Nauru is operated by Air Nauru. Its single Boeing 737-400
aircraft services Tarawa, Nadi, Brisbane and Melbourne. The airline also operates a charter service
between Sydney and Norfolk Island.
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