ACCC proposes to approve collective bargaining for central Queensland coal producers

The Australian Competition and Consumer Commission has released a draft determination proposing to authorise Endocoal, Whitehaven Coal, Yancoal Australia, QC Resource Investments and Linc Energy to collectively bargain with Adani Mining for access to its new coal terminal at Dudgeon Point, and with Aurizon Network (previously QR Network) for access to below rail infrastructure to transport their coal to the terminal.

“This decision allows coal miners to conduct more timely and efficient negotiations to secure terminal and rail capacity, which is likely to reduce the risk of unnecessary delays in the construction of this terminal and coal export growth,” ACCC Commissioner Joe Dimasi said.

“The ACCC is satisfied that the voluntary nature of the arrangements, the limited composition of the collective bargaining group and the limited scope of the negotiations means there is little, if any, public detriment.”

The ACCC proposes to grant authorisation for 15 years, to cover initial contract negotiations and to allow any long term contracts to be given effect to.

The ACCC has also granted interim authorisation to enable the parties to commence collective negotiations.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.  Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.  Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.

More information about this application for authorisation and the ACCC’s draft decision will be available by following the Public registers link on the ACCC’s website www.accc.gov.au/AuthorisationsRegister