COVID-19

Mining cartel cleared by ACCC

THE Australian Competition and Consumer Commission has given the green light for more than 280 resources companies to source and share essential safety supplies and spare parts for machinery and mining equipment so they can continue operating through the COVID-19 pandemic.

Interim authorisation granted to the Minerals Council of Australia and seven other mining associations to work together to keep mining operations continuing around the country.

Interim authorisation granted to the Minerals Council of Australia and seven other mining associations to work together to keep mining operations continuing around the country.

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Interim authorisation has been granted to the Minerals Council of Australia and seven other mining associations to work together to keep mining operations continuing around the country.

ACCC chairman Rod Sims said with COVID-19 having a dramatic impact on global manufacturing and supply chains challenges have arisen for sectors such as mining that are still operating and still in need of crucial equipment and services, with shortages and supply chain disruptions.

Under the interim authorisation participating companies can coordinate on the sourcing, purchase and distribution of crucial supplies and services including health and safety equipment, logistics, equipment maintenance, and consumables such as fuel and explosives.

Sims said interim authorisation would allow companies to share inventories and manage demand for critical services and supplies, coordinate deliveries and share details of potential suppliers of personal protective equipment.

However, HE SAID, approval did not allow mining companies to coordinate on the terms, conditions, or prices in supply contracts.

MCA CEO Tania Constable said the interim authorisation would let participating companies work together to source and share the critical materials needed to keep workers, their families and communities safe and healthy through the global pandemic and guarantees specified equipment goes to those most in need.

She said when the country emerged from the COVID-19 pandemic a strong resources sector, safe and healthy workforce and thriving regional communities would ensure the economic recovery was delivered widely, at speed.

Sims said the ACCC would make a call when appropriate, on when the authorisation was to be revoked, with the commission also seeking feedback on an application to keep the authorisation in place for 12 months.

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