comments on: access and mineral supply chains. stephen p king monash university
Post on 18-Jan-2018
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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’.
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