Australian Regulator Urges Collective Bargaining For Queensland Coal Rail

Australia's competition watchdog Thursday proposed allowing a group of coal miners to bargain collectively for access to the rail network connecting mines in Queensland state's Bowen Basin with the port of Abbot Point.

The Australian Competition and Consumer Commission said collective bargaining between the miners and QR National Ltd. (QRN.AU) for access to the Newlands, Blackwater and Goonyella rail systems would bring significant cost savings and help avoid potential delays in building new terminals at Abbot Point.

The miners include Carabella Resources Ltd. (CLR.AU), New Hope Corp. (NHC.AU), Peabody Energy Corp. (BTU) and Rio Tinto PLC (RIO).

The ACCC is proposing to authorize the arrangements for 15 years.

"The ACCC is satisfied that the voluntary nature of the arrangements, the limited composition of the collective bargaining group and the limited scope of the negotiations will mean that any potential detriment is minimal," Rod Sims, the ACCC's chairman, said.

-By David Winning, Dow Jones Newswires; [phone]; [e-mail]