BHP wants action on Aurizon

BHP has called for the Government to legislate powers to enable the Queensland Competition Authority to bring Aurizon to heel.

The mining industry has claimed Aurizon has a gun to the head of coal companies in the dispute which threatens up to $ 4 billion in coal exports, but it’s the first time since the introduction of the mining tax by the Rudd government that the industry has rallied to fight off a threat.

Asset president of BHP’s coal joint venture in Queensland Rag Udd said Aurizon was “applying duress to our customers” and an impasse had been reached, with neither side willing to budge.

He said the stalemate should not be occurring when prices for coal were at high levels and capable of generating billions of dollars for coal producers and the State Government through royalties.

An estimated 20 million tonnes of coal exports are threatened by an Aurizon decision to alter its maintenance of the central Queensland coal network. That strategy followed a draft decision from the Queensland Competition Authority drastically reducing the amount of revenue Aurizon could make from the monopoly track.

“When there is an open transgression where practices are being altered that withhold capability, the regulator should have the ability to step in and make sure that doesn’t happen in the future,” Mr Udd said.

He said BHP would consider moving some of its freight away from Aurizon when contracts expired.

Aurizon said it took its regulatory responsibilities very seriously. The State Government is yet to respond.