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Posco and BCA urge more Australian infrastructure investment

by Staff Writer
January 3, 2007
in Uncategorized
Reading Time: 2 mins read
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<p>South Korean steel-maker Posco &#8211 which plans to raise its spending in Australia by 15% to about $3.2bn this year on coal, iron ore, nickel and zinc &#8211 wants the country to spend more on its export infrastructure.</p> <p>The <em>Australian Financial Review</em> reported Posco’s comments today (Wednesday, January 3) along with those of the Business Council of Australia (BCA), which wants privately owned infrastructure exempt from competition rules, especially those related to Part IIIA of the Trade Practices Act.</p> <p>Posco purchasing executive Kwon-young Tae was quoted as saying: "It is good for Australia, because if Australia fails to do this we will have to find an alternative and once we have fixed the problem by buying elsewhere, it takes time to swing back."</p> <p>Mr Kwon said Posco had experienced labour and infrastructure bottlenecks in Queensland, New South Wales and Western Australia.</p> <p>Posco wanted raised Australian supply &#8220in order to increase its market capitalisation and ward off foreign takeover attempts to which it is vulnerable because 60% of its shares are in foreign hands&#8221, <em>Mining Journal</em> said yesterday.</p> <p>The BCA’s comments reflect the position of members BHP Billiton and Rio Tinto Australia.</p> <p>Both risk having to open up their Pilbara rail links to Fortescue Metals Group (FMG), whose name does not appear in the BCA member list, after FMG won late last month a Federal Court ruling on where the production process ends. </p> <p>The BCA also emphasised the problem of bottlenecks despite action to improve rail links and ports.</p> <br />

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