Christmas Island Economics
The phosphate mine is the largest single employer accounting for between 90-100 full time jobs or about 14% of Christmas Island's total employment (2006). The mine is the most important economic producer on Christmas Island and in 2001 accounted for 16% of the value of the economy.
Government and transport also contribute significantly to the economy. The Government sector includes administration, health, education, policing and defence.
Tourism, hospitality and retail trade is an important income earner. It is estimated that the industry was worth $3-5m in 2003.
Phosphate Mining
George Clunies Ross and Englishman John Murray vied for the right to extract phosphate until 1891 when the British Government offered them a joint 99 year lease in return for a small royalty. Small shipments began to be exported in 1895 and by 1897 they had formed the Christmas Island Phosphate Company. Clunies Ross returned to the Cocos (Keeling) Islands and Murray became Chairman of the company. As there was no Indigenous population a work force had to be imported. Under the control of a Straits Settlement District Officer the initial contingent of 200 Chinese labourers, eight European management personnel and five Sikh Policemen were brought to Christmas Island in 1898. The first major shipment of phosphate was exported in 1900. In 1948 the mining was taken over by the Australian and New Zealand Governments in partnership with the British Phosphate Commissioners in management.
In the late 1970s the Australian and New Zealand Governments re-negotiated their agreement for provision of phosphate to the two countries. As part of the process, the British Phosphate Commissioners relinquished the management of the mine to the newly formed Phosphate Mining Company of Christmas Island in 1981. As deposits of preferred quality phosphate neared exhaustion the mining operation faced economic constraints and probable closure. The effects of drought and low phosphate prices led to a Government decision to close the mine in December 1987.
In 1990 the mine was bought by union workers and reopened as Christmas Island Phosphates now Phosphate Resources Limited (PRL). PRL's main market is South East Asia.
A conservation levy is collected by AGD from PRL. AGD has entered into a Memorandum of Understanding (MOU) with Parks Australia to use moneys raised from the conservation levy to rehabilitate old mine sites.