ACCC announcement on problem coal terminal

In 2007, Gladstone Ports Corporation Limited publicly undertook to cease export of coal from Barney Point and reduce the quantity of coal dust from the Port likely to affect residents of Gladstone.
The applicants reached an agreement with the Queensland State Government whereby a consortium of coal producers intend to construct a new coal export terminal at the Port.
Under the ACCC’s draft decision, the re-allocation from Barney Point Coal Terminal would be to either the RG Tanna Coal Terminal or a new terminal to be constructed at the Port.
The new terminal, Wiggins Island, would be operated by GPC and would export coal including that formerly exported from Barney Point while producing fewer coal dust emissions per million tonnes of coal processed at the terminal each year. Wiggins Island would also be located further away and predominantly down wind such that coal dust would be less likely to affect the city of Gladstone.
"The ACCC considers the proposed arrangements are likely to provide environmental benefits and may also avoid delays in infrastructure investment, new coal export capacity and job growth in Central Queensland," ACCC chairman Graeme Samuel said.
"The ACCC notes that the arrangements apply to a relatively small quantity of tonnage capacity and Wiggins Island is expected to have much greater capacity than Barney Point currently has. The transfer of coal operations between Barney Point and Wiggins Island will not disrupt coal exports from the Port because Barney Point will not be closed until Wiggins Island is operational."
The ACCC now invites comments on the draft determination. The ACCC's draft determination and information about making a submission will be available from the ACCC website: www.accc.gov.au/AuthorisationsRegister

ACCC to re-examine BHP/Rio joint venture
By Rob McKay – www.lloydslistdcn.com.au
The Australian Competition and Consumer Commission has returned to the case of what could be the biggest proposed link in Australian mining history – the BHP Billiton/Rio Tinto iron ore production joint venture in the Pilbara.
In explaining the need for the new review, two years after its initial probe, the ACCC noted that expected new projects by other miners had been curtailed.
While the global financial crisis might also have had an impact, recent contrasting production behaviour from BHP and Rio opened the possibility that competition from other miners would be too weak to constrain the joint-venture pricing behaviour.
The 2008 review had been prompted by concerns over the joint venture's effect on BlueScope Steel, as "the only significant purchaser of iron ore in Australia".
OneSteel has its own source of iron ore in South Australia's Middleback Ranges.
While two years ago BlueScope signed a 10-year contract with BHP, the steelmaker had now raised concerns about the potential effects of the joint-venture, the ACCC said.
It was seeking comment by April 14 on the:
• global seaborne supply of iron ore lump and fines; 
• national supply of iron ore lump and fines;
• supply of port and rail services in the Pilbara; and
• acquisition of iron ore tenements and mining inputs in the Pilbara.
The ACCC invites further submissions from the market by April 14th. The proposed date for announcement of the ACCC's findings remains as April 28th.
Submissions can be sent by email to the ACCC at: mergers@accc.gov.au

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au