Australian resource giants call for COVID-era data sharing waivers to shore up operations amid fuel crunch

Australia’s resources giants are making moves to shore up the nation’s economic engine by calling for the reintroduction of COVID-era waivers to share information between competitors.

Big miners are expected to apply to the consumer watchdog later this week for permission to share fuel stock data to ensure the sector keeps operating amid the Iran war-induced global energy crisis.

Minerals Council of Australia chief Tania Constable said it would be in the nation’s interest to have a holistic view of the fuel supply issues the sector face give it is “propping up” the economy.

“The primary industries are doing the heavy lifting for the nation. Without the mining industry, I think the country’s in trouble,” she said.

“Within our own industry, we need to make sure that the companies can talk. There won’t be a lot of discussion but we want to see where needs, need to be understood.

“It’s just to understand what the absolute needs are of the industry as a whole, and we don’t get ourselves into any sort of regulatory problem.

“Really, our priority should be getting more supply into the market.”

It comes as the Chamber of Minerals and Energy WA and Association of Mining and Exploration Companies have warned that smaller operators have already begun scaling back non-essential activities.

The ACCC is expected to rule on whether it would grant miners immunity from competition laws around sharing fuel inventories next month. If approved, it’s expected bigger players would collaborate on securing fuel for suppliers and contractors.

AMEC boss Warren Peace said while operations were continuing for junior miners, there could be an economic cliff in coming months if the Middle East conflict is unresolved.

The smaller players are predominantly reliant on independent distributors, which haven’t been prioritised by wholesalers and face soaring diesel prices north of $3 per litre.

Already, WA contractor Blue Cap Mining has announced it will stand down about two thirds of its 180-strong fly-in, fly-out workforce.

Mid West iron ore miner Fenix Resources has also prioritised core production and cut back non-essential activities to preserve their dwindling fuel allocations.

Further measures to help Australia navigate through the fuel crisis were announced on Monday after the Prime Minister held a virtual National Cabinet meeting to war-game a united response.

At a press conference in Canberra the PM detailed four levels of fuel action — from planning and preparing phrase up to taking more drastic measures to protect critical services.

Ms Constable welcomed the plan, which included that critical industries would be prioritised in a worst case scenario.

“We need to make sure that — because we are so reliant on diesel jet fuel for our to move our people — that we keep mining running. So, it being considered as an important industry is welcomed,” she said.

Ms Constable said that the MCA was working with State peak bodies and companies to monitor fuel supplies to inform its conversations with government during their emergency response.

MCA have also sent a survey to members to collate data on fuel supply across the sector and holds weekly meetings with a group dedicated to addressing the issue.

It came after the PM and energy minister Chris Bowen announced on the weekend the Federal government would underwrite the purchase of fuel from the private sector to try to get more supply into Australia.

Mr Bowen said given the volatile environment, the Federal Government would “set up Export Finance Australia to help these firms hedge their risk” to make purchases “with confidence”.

It’s the latest in a suite of measures the government has taken to alleviate fuel pressures since the Middle East conflict started on February 28.

That has included releasing up to 762 million litres of fuel from Australia’s strategic domestic reserves, relaxing Australian standards to allow higher sulfur levels, working with trading partners, giving the ACCC stronger powers to deal with fuel retailer price gouging and appointing new fuel tsar Anthea Harris.