Comments on: Access and mineral supply chains. Stephen P King Monash University

Short version – pretty much agree with Russell.

Long version.

Should miner F be allowed access to miner B’s railway line?

Where is the economic problem?

Mine Railway Foreign buyers

Mine Railway: Build own or use someone else’s Foreign buyers

Mine Railway: Build own or use someone else’s Foreign buyers Price takers in international markets

Mine Railway: Build own or use someone else’s Foreign buyers Price takers in international markets Existing rail owned by separate company

No Economic problem – no regulated access needed.

Mine Railway: Build own or use someone else’s Foreign buyers Price takers in international markets

Mine Railway: Build own or use someone else’s Foreign buyers Price takers in international markets Existing rail owned by mining company

Mine Railway: Build own or use someone else’s Foreign buyers Price takers in international markets Existing rail owned by mining company No upstream issue

No Economic problem – no regulated access needed.

In both these cases a miner may seek regulated access to improve its bargaining position.

No Economic problem – no regulated access needed. And in both these cases declaration could occur under Part IIIA!

Mine Railway: Build own or use someone else’s Foreign buyers Existing rail owned by mining company

Mine Railway: Build own or use someone else’s Foreign buyers Market power in international markets Existing rail owned by mining company

Mine Railway: Build own or use someone else’s Foreign buyers Existing rail owned by mining company Upstream holdup

Economic problem – regulated access may be appropriate solution.

Mine Railway Foreign buyers Market power in international markets Mine

Railway Foreign buyers Market power in international markets Mine Vertical separation or joint ownership?

Mine Railway Foreign buyers Market power in international markets Mine Vertical separation or joint ownership? Imperfect access regulation

Conclusion Basically agree with Russell. But we have a problem in our law relating to ‘market’. And joint ownership with a regulated access price is an interesting ‘third way’.