Australian Regulator Revokes Interim Approval For Coal Plan
September 01 2009 - 6:17AM
Dow Jones News
The Australian Competition and Consumer Commission said Tuesday
it revoked interim authorization that was granted in July to phase
in a new system for ships entering and exiting the Port of
Newcastle because one party in the negotiations has failed to agree
to a new long-term plan.
A person familiar with the matter said BHP Ltd. (BHP.AU) was the
company that didn't agree to the new framework for how ships are
brought into the Port of Newcastle to load coal. Currently, there
are issues with ship backlogs in the port which complicate the
export of coal from that part of Australia.
A BHP representative wasn't immediately available for
comment.
Aug. 31 was the date by which all the parties involved were to
establish a detailed framework for a long-term solution to replace
the current system at the Port of Newcastle.
One party failed to agree, according to the ACCC, which also
said there have been "numerous" delays in the process and an
"apparent inability for all parties to reach an agreement."
The parties are allowed to continue negotiating outstanding
issues and are free to seek interim authorization again, the agency
said.
"It is disappointing one producer is holding out on a final
solution that all other coal producers have accepted as necessary
for the future of the Hunter coal industry," said Joe Tripodi, the
minister for ports and waterways in New South Wales. "While we
await an answer from the last producer, we will discuss with (Port
Waratah Coal Service) tomorrow regarding the need to introduce
short-term measures to help manage coal exports following the
withdrawal of the ACCC's authorization."
-By Cynthia Koons, Dow Jones Newswires; 61-2-8272-4691;
cynthia.koons@dowjones.com