Newcastle quota approved--with a warning

摘要

The Australian competition watchdog, the ACCC, has formally approved continuation of the Newcastle tonnage quota system, known as the CBS, until the end of 2008 - but with a warning that it is unlikely to be extended. The decision, which also completes the 'defeat of an Xstrata/Rio Tinto-sponsored attempt last year to link the quota system to rail contracts, followed applications by the Noble-backed Donaldson Coal and the state-controlled Newcastle Port Corporation. The latter two entities were the chief opponents of the Xstrata/Rio Tinto strategy which they saw as discriminatory against smaller coal producers and likely to make output expansion more difficult.