A PYMNTS Company

Australia: Fortescue urging iron ore output cap upsets regulator

By  |  March 25, 2015

Australia’s Fortescue Metals Group called on iron ore miners to cap production in the hope of reversing a dramatic fall in prices, triggering a probe by Australia’s competition regulator.

Fortescue founder and chairman Andrew Forrest told a gathering in Shanghai late Tuesday he was happy to challenge rivals to “cap our production right here and start acting like grown-ups.”

The Australian Competition and Consumer Commission said on Wednesday it would investigate Forrest’s remarks. Australia has penalties of up to 10 years in jail for individuals involved in cartel behaviour and heavy financial penalities for companies.

“In general terms, any attempt by Australian businesses to encourage competitors to restrict outputs is a matter of grave concern to the ACCC,” commission chairman Rod Sims said in a statement.

 

Full Content: The Wall Street Journal

 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.