Coal news and updates

Coal giant calls for price regulation in Newcastle Port

A year after the state government privatised the Port of Newcastle, coal mining giant Glencore has now applied to have the competition watchdog oversee pricing in the port.

Hunter Valley coal miner Glencore has made the application to the National Competition Council, describing the shipping channels in the Port of Newcastle as a natural 'bottleneck' monopoly.

The push for price protection comes in the wake of the state government's massive $1.75 billion deal to lease the port to private operators - Hastings Funds Management and China Merchants.

Glencore says the new operator has already increased prices for some vessel types using the port by 60 per cent, with no change in services.

It says the uncertainty associated with pricing could have a profound effect on the Hunter's already marginal mining operations, given the current resources downturn.

Greens MP John Kaye said he is not surprised the coal companies are concerned at the price increases.

"This is what happens when a port is privatised without regulation on price," he said.

"The people of Newcastle and its economy are going to suffer, and suffer badly.

"Exports will be damaged, imports will become more expensive - it's a dead hand on the economy of the Hunter."

Dr Kaye said Federal regulation may be the only way to address pricing issues in the Port of Newcastle.

"What we could see is New South Wales yet again losing out to privatisation, the economy of the Hunter held back by higher import prices and barriers to export," he said.

The Port of Newcastle says it is working through the detail of Glencore's application.

It says its current pricing schedule has been in place since January.

source: http://www.abc.net.au