Phosphate of cargo ship to be auctioned

BIDS to purchase 55 000 megatons of phosphate will close on April 19 after the cargo ship transporting the rock was arrested in the Port Elizabeth harbour last year.

On May 1, the ship carrying the phosphate, the NM Cherry Blossom, was arrested in Algoa Bay following claims the cargo had been unlawfully obtained.

The ship, which was en route to New Zealand, has been anchored in the Bay since then.

The phosphate it was carrying had allegedly been removed illegally from a disputed territory in Western Sahara.

The 45 000 megatons of Boucras high grade phosphate and 10 000 megatons of reactive phosphate was mined by Phosphates de Boucraa SA at a mine in the Saguia el-Hamra region of northern Western Sahara.

Phosphates De Boucraa SA is a Moroccan-based company while the NM Cherry Blossom is sailing under the flag of the Marshall Islands.

Last year, the Port Elizabeth High Court heard that the mine in Western Sahara did not have the title to sell the cargo and that the sale was invalid.

Lawyers on the opposing end maintained this was a political matter that should not be decided by a foreign court.

The Port Elizabeth court did not agree and ordered that the cargo be auctioned off and proceeds be placed in the bank account of a court-appointed broker who will then inform the parties involved.

They, in turn, will then be allowed to submit any objections or further court applications. The online sealed bid auction ends on April 19.

Clear Asset managing director Ariella Kuper, responsible for the auction, declined to answer any further queries.