Jul 5, 2011

Xstrata, competition and a new form of xenophobia

Mining multinational Xstrata refused to cooperate with Treasury over complaints that it engaged in anti-competitive behaviour. The reason? "Xenophobia".

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Foreign mining giant Xstrata declined to cooperate with Treasury in an investigation of its contracts with part-owner Glencore, with which it has an array of contracts that have never been subject to competitive tender.

In October 2010, the CFMEU lodged a complaint about Xstrata Coal’s industrial relations policies and the anti-competitive nature of its contracts with Glencore under the OECD Guidelines for Multinational Enterprises. Treasury’s International Finance and Development Division acts as the Australian national contact point for the guidelines.

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4 thoughts on “Xstrata, competition and a new form of xenophobia

  1. michael crook

    So, tell me again, exactly who does run this cesspit of a country?

  2. gregb

    Perhaps the question should be who runs that cesspit, Switzerland?

  3. jungarrayi

    Wasn’t Xtrata the company which was exposed in a 4-corners programme as having been alleged to have sabotaged the development of a significant cobalt deposit in Western Australia?
    From memory the multimillion dollar loss incurred by Xstrata in Australia was dwarfed by the extra profits made by Glencore as a result of the cobalt price staying high.
    Of course it was purely coincidental that Glencore controls a very large cobalt deposit in South Africa as well as the world trade of several commodities, including cobalt.

    The Australian Government is very keen to exclude and demonize “boat people” and prevent them from arriving in this country. Their main beef is that those evil people smugglers are profiting from people’s misery.
    Foreign capital on the other hand is welcomed with open arms, and woe any Government that dares to suggest that mining giants should pay a super-tax, or that multinational mining companies are anywhere profiting from people’s misery.

    Xenophobia in action:
    “We will decide what foreign companies come to this country and the manner in which they come”

    As for Switzerland, isn’t it the happy country famous for its watches and army knives and its yodelers?

  4. Peter Bayley

    The defining challenge of our time is rapidly becoming the need to reel in large corporations. They have become way too powerful, buying power, influence and legislation (or the removal if it) throughout the Western world – and then using that influence to control the other global spheres. They act internationally with impudence – in the realm across and between nation states, where they divide and conquer national governments which have all demonstrated how ineptly they act together (UN, Kyoto, Copenhagen…). Western Banks, in particular, have become particularly bold. They are now totally controlled by a criminal element that buys financial influence and control through debt created without collateral backup, safe in the knowledge that they can cash in their lobbying efforts for interest-free government bailouts whenever necessary – but I’m beginning to rave! – excellent article and a wake-up call.

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