Competition issues in resources projects

Mining projects require rail and port access to get the resource from the mine to the export market. Owners and users alike are constantly looking for ways to improve the efficiency of the supply chain and to increase supply chain throughput. Often, these outcomes require the operator to maintain or increase its level of control over the supply chain.

In devising ways to improve the efficiency of supply chains or to increase control, owners,operators and users must be careful not to breach the anti-competitive provisions of the Competition and Consumer Act 2010, particularly the prohibitions against misuse of market power, exclusive dealing and third line forcing. Parties may seek immunity to engage in exclusive dealing and third line forcing by lodging a notification with the Australian Competition and Consumer Commission.

We briefly outline two key competition issues that have arisen in relation to the control of certain aspects of the supply chain in resources projects…

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