Comments on: Access and mineral supply

chains.Stephen P King

Monash University

Short version – pretty much agree with Russell.

Short version – pretty much agree with Russell.

Long version.

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

Where

is the

econ

omic

proble

m?

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.

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 Mine Mine

Mine

Railway

Foreign buyers

Market power in international

markets

Mine Mine Mine

Vertical se

paration or

joint ownership?

Mine

Railway

Foreign buyers

Market power in international

markets

Mine Mine Mine

Vertical se

paration or

joint ownership?Imperfect a

ccess

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’.