The ACCC has issued a final determination granting authorisation to enable Boral Cement Limited and Stanwell Corporation Limited to give effect to an Offtake, Operation & Maintenance Agreement (OOMA).
Under the OOMA, Boral will have the exclusive right to take fly ash from Stanwell's Tarong PS and an obligation to take, and pay for, at least a minimum monthly tonnage of fly ash. Fly ash is a waste by-product created during the coal burning process at coal-fired power stations and can be used as a partial substitute for cement when manufacturing concrete.
Authorisation is granted for five years from the Offtake Commencement Date, which is the length of the first term of the OOMA.
Authorisation is also subject to a condition requiring Boral to comply with clause 9.1 of the OOMA, which imposes obligations on Boral in relation to its supply of fly ash to third parties.
Authorisation provides businesses with legal protection for arrangements that may otherwise risk breaching the law but are not harmful to competition and/or are likely to result in overall public benefits. In this case, Boral and Stanwell sought authorisation for reasons including that the OOMA may involve exclusionary conduct in breach of competition law, including by denying third parties the right to directly offtake fly ash from Tarong PS.
Further information about the ACCC's draft determination is available on the ACCC public register at: Boral Cement fly ash offtake agreement at Tarong Power Station.
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Australian Competition and Consumer Commission published this content on 26 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 November 2020 04:30:07 UTC
