The Queensland Competition Authority (QCA) will consider submissions on the request by northern Bowen Basin miner QCoal for a declaration over the Abbot Point coal handling facility north of Bowen.
The declaration allows the QCA both to regulate access to the service, including its terms and conditions and to resolve disputes related to access.
The issue has raised its head as QCoal is one of the first contracts to come up for reassessment since Adani took over a 99-year lease on June 1, 2011.
Main image: above the Abbot Point Wharf
Abbot Point operates under the North Queensland Export Terminal (NQXT) company which is 100 per cent owned by Carmichael mine operator and international mining company Adani through its Adani Ports subsidiary.
In its application, QCoal stated that the change in ownership of Abbot Point coal terminal from a State-owned asset to one operated by an international coal mining company has had ‘massive’ competition ramifications for other users of the port.
NQXT rejected claims saying the port had operated under the same arrangements under different ownership since opening in1984.
National Strategic Transport Asset
QCoal Group Executive James Black said the port, already designated a National Strategic Transport Asset, should be a declared service under Queensland competition legislation so that all users have an even playing field.
“The Abbot Point coal terminal is now operated by a commercial company which is owned by a coal miner who controls pricing and access for its competitors,” Mr Black said.
“The change to private ownership of the facility necessitates stronger measures to protect users. This is particularly where, as here, the new private owner is vertically integrated with a user of the facility.”
An NQXT spokesman rejected QCoal’s claims and said they would oppose the Application which they describe as, ‘entirely unjustified’.
“We provide first class handling services to all our customers on a consistent basis. Our handling charges are reasonable and reflect the costs of providing a safe, compliant, and efficient service that meets our customers’ requirements to export their high-quality Queensland coal to global markets.
“We’ve offered to meet with QCoal several times to negotiate the details of the future long-term handling services agreement, however, they have refused to come to the table and have chosen this path instead.
A ‘declared service’ under the Queensland Competition Authority (QCA) Act refers to a service that has been formally declared for third-party access, meaning it’s open to be used by other businesses and individuals.”
Competition question
The terminal did not face effective competition from any other port facility, Mr Black said.
“All mines from Byerwen and north are captive to NQXT with no prospect of being able to rail to Mackay or other port due to rail constraints,”.
“This means one of our competitors controls not only pricing for our use of the port but also access and can potentially prioritise its own use of the port over other users.”
NQXT said the owner-user structure had long been in place.
“The operations and maintenance functions of the North Queensland Export Terminal have been managed by a related party for close to a decade without fear or favour.
“This sort of arrangement is not unusual within our industry or in the history of the North Queensland Export Terminal, with MIM/Xstrata/Glencore, itself a Terminal user and QCoal competitor, providing the Terminal’s operations for decades up until 2016.”
The Abbot Point coal handling facility has a nameplate capacity of 50Mtpa.