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Home / Business / Companies / Agribusiness

Political rift halts $7m of NZ-bound phosphate

Matthew Theunissen
By Matthew Theunissen
NZ Herald·
14 Jul, 2017 08:54 PM3 mins to read

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A $7 million shipment of phosphate bound for New Zealand will not reach its destination after the company carrying the cargo dropped a politically-charged case in a South African court. Photo / 123RF

A $7 million shipment of phosphate bound for New Zealand will not reach its destination after the company carrying the cargo dropped a politically-charged case in a South African court. Photo / 123RF

A $7 million shipment of phosphate bound for New Zealand will not reach these shores after the company delivering it withdrew from a politically-charged case in a South African court.

The NM Cherry Blossom, carrying 50,000 tonnes of the substance, was stopped at Port Elizabeth in South Africa in May amid claims by pro-Western Sahara independence groups that its cargo was illegally obtained by a Moroccan company to be sold to New Zealand fertiliser maker Ballance Agri-Nutrients.

The High Court of South Africa last month ordered that the ship remain docked there until the case could go to trial.

However, the Moroccan mining company, OCP, yesterday announced it had "reluctantly come to the conclusion that participating in any trial before this forum would give further credit to a process without any legal legitimacy".

In a strongly-worded release, it said the South African court had "rendered a transparently political opinion and committed a serious abuse of power".

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Conversely, Western Sahara Watch, which advocates self-determination for the region, said this constituted a $7m "walk-over victory".

"The fact that Morocco has stepped down shows how weak cards they hold. Based on development of international law, Morocco has no legal right to exploit the territory it holds under occupation," said spokesman Davide Contini.

"It is a remarkable step for the people of the territory and hopefully this could be a first step of seeing a halt to the dirty exports."

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The NM Cherry Blossom will not deliver its $7m cargo of phosphate to New Zealand due to a bitter geopolitical dispute in north Africa. Photo / supplied
The NM Cherry Blossom will not deliver its $7m cargo of phosphate to New Zealand due to a bitter geopolitical dispute in north Africa. Photo / supplied

It was not immediately clear what would happen to the NM Cherry Blossom or its cargo.

Western Sahara, which the United Nations classifies as a "non-self-governing territory", was a Spanish colony until 1975 when Spain relinquished control. A bitter civil war erupted between neighbouring Mauritania, Morocco and nationalist forces seeking to lay claim to the region. This lasted until a UN-brokered ceasefire in 1991 but Morocco continues to occupy large portions of the region with a strong military presence.

The UN has been calling on Morocco to allow a referendum for self-determination for Western Sahara since 1966 but none has taken place.

Ballance Agri-Nutrients chief executive Mark Wynne told the Herald that despite the South African legal matters, the company had arranged an additional shipment of Western Sahara-sourced phosphate from OCP, which travelled via a different route and had already been offloaded in New Zealand.

OCP's decision to withdraw from the case did not change Ballance's position and it would continue importing phosphate from the territory.

"This was a pragmatic decision [by OCP] really. The vessel's been sitting there for about 70 days, it's getting horrendously expensive and a court case would be likely to go on for months and months if not years," Wynne said.

Ballance Agri-Nutrients chief executive Mark Wynne says his company will continuing sourcing phosphate from Western Sahara despite allegations this endorses Morocco's illegal occupation. Photo / file
Ballance Agri-Nutrients chief executive Mark Wynne says his company will continuing sourcing phosphate from Western Sahara despite allegations this endorses Morocco's illegal occupation. Photo / file

Ballance paid for the phosphate only when it arrived in New Zealand so it would not have to meet the cost of the lost cargo.

Wynne was comfortable that Ballance's money was going to Morocco rather than to the people of Western Sahara, from where the phosphate was sourced.

"Legally we're fine. Ethically, I have personally been to the Western Sahara region to see that OCP is reinvesting the money they say they are reinvesting in the creation of jobs, healthcare systems and education facilities," he said.

Wynne did not believe his company's activities were endorsing what many regard as an illegal occupation.

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"Ours is a commercial transaction -- we are not involved in the politics and the politics are extremely complicated. It has been through the United Nations Security Council and remains there today," he said.

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