ACCC to re-examine BHP/Rio joint venture

<span class="" id="parent-fieldname-description"> 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. </span> <p>By Rob McKay<br /><br />In explaining the need for the new review, two years after its initial probe, the ACCC noted on March 25th that expected new projects by other miners had been curtailed.<br />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.<br />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”.<br />OneSteel has its own source of iron ore in South Australia’s Middleback Ranges.<br />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.<br />It was seeking comment by April 14th on the:<br />&bull global seaborne supply of iron ore lump and fines<br />&bull national supply of iron ore lump and fines <br />&bull supply of port and rail services in the Pilbara and<br />&bull acquisition of iron ore tenements and mining inputs in the Pilbara.</p><p>Source: Lloyd’s List Daily Commercial News – <a target="_blank" href="http://www.lloydslistdcn.com.au">www.lloydslistdcn.com.au</a><br />&nbsp</p>