Coal bids ‘rigged’ for Obeids, inquiry told

An associate of the family of former New South Wales Labor Party powerbroker Eddie Obeid made a statement almost two years ago that claimed Obeid’s son, Moses, had told him that a tender process for coal exploration licences was rigged so their bids were guaranteed to win, according to the Australian Financial Review.

Commodities trader Arlo Selby told the Independent Commission Against Corruption in Sydney on Monday that he gave the statement “under duress” but there were “definitely elements of truth in there”

The statement, dated January 2011, said Moses Obeid told Selby around June 2008 that there were “some very serious coal plans” involving land in the Bylong Valley east of Mudgee.

He claimed in the statement, which he did not admit signing, that Moses Obeid had also told him that then mining minister Ian Macdonald was “in on the deal and that’s how we can guarantee we will win whatever tender we go for”. But Selby told the hearing on Monday that he could not recall that discussion.

Perdaman seeks to wind up Griffin Coal

Perth-based Perdaman Chemicals has escalated its $3.4 billion claim against Indian energy giant Lanco Infratech’s Griffin Coal by asking the West Australian Supreme Court to wind up the company, according to the Australian Financial Review.

Perdaman is also trying to get a court injunction to stop the $1 billion-plus sale of the Bluewaters power station in the southwest of Western Australia. The injunction is a bid to stop Lanco’s lender, ICICI Bank, being given secured creditors status, which would place its interests above Perdaman’s.

Bluewaters and Griffin Coal were owned by fallen tycoon Ric Stowe.

Rio veteran talks up China story

The head of Rio Tinto's China operations has attacked the "impending doom camp" of China analysts as he launched a strong defence of the Asian giant's economic growth prospects and its future demand for Australia's commodities, according to The Australian.

Ian Bauert told the In The Zone conference at the University of Western Australia yesterday that 690 million people -- more than half of China's population -- lived in cities and that the urban population would hit an estimated 1 billion by 2030.

The Shanghai-based executive's comments are significant because Rio is the only big Australian miner that has not scaled back its iron ore expansion plans in the Pilbara in the wake of China's economic slowdown and a collapse in the price of the steelmaking ingredient.