The Australian Competition and Consumer Commission has released its final determination allowing Cockatoo Coal, Cuesta Coal, MetroCoal, Peabody Energy Australia PCI, QC Resource Investments and Whitehaven Coal to collectively negotiate with SunWater for water supply, in relation to the development of the Nathan Dam project in central Queensland.
“The ACCC is satisfied that collective bargaining is likely to result in transaction cost savings and will help coal producers secure access to water supply from the Nathan Dam on a timely basis,” ACCC Commissioner Joe Dimasi said.
“This will support mining expansions in the Surat and Bowen Basins and is likely to reduce the risk of unnecessary delays in generating additional export revenue.”
The ACCC is satisfied that there is likely to be little, if any, public detriment generated by the conduct as participation in the collective bargaining is voluntary, does not include boycott activity, and there are limits on the exchange of information between bargaining group members.
Authorisation is granted for 23 years to cover initial contract negotiations and to allow any long term contracts to be given effect to.
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 decision will be available from www.accc.gov.au/AuthorisationsRegister