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PERTH (miningweekly.com) – Federal Treasurer Joe Hockey on Thursday announced that a decision had been taken not to initiate a Senate inquiry into the Australian iron-ore sector.
Hockey said that the decision was taken after discussions with regulatory bodies and stakeholders across the resources sector.
The resources sector had been quick to welcome the news, with the Minerals Council of Australia saying it was a "good decision" that would enable Australia’s iron-ore sector to focus on the task of further strengthening its competitiveness in a fiercely global market.
The Western Australian Chamber of Minerals and Energy (CME) had also welcomed the announcement, with CEO Reg Howard-Smith saying that the decision recognised the risk of the inquiry being interpreted by Australia’s trading partners as a regressive step, with the prospect of increased government regulation and intervention in the market.
“Free markets have delivered enormous prosperity to the Australian community. Our resources sector has thrived in this competitive environment,” said Howard-Smith.
Prime Minister Tony Abbott had previously said he was in favour of a Senate inquiry into the iron-ore sector, but added that such an inquiry should not be allowed to turn into a witch-hunt.
Mining magnate Andrew Forrest had been the most vocal proponent of the proposed inquiry, blaming majors Rio Tinto and BHP Billiton for flooding the market with Pilbara product, which, in turn, led to a decline in the iron-ore price.
Forrest had said that an inquiry would help determine whether the iron-ore market was operating as a truly free market, or whether it was being distorted by the actions of certain industry members, and to whose benefit and why.
BHP CEO Andrew Mackenzie, meanwhile, had warned that any inquiry could damage Australia’s competitiveness and could cause trading partners to invest in other parts of the globe.