Australia’s competition regulator, reviewing BHP Billiton Ltd and Rio Tinto Group’s iron ore joint venture is examining the possibility that the venture may influence the supply of the raw material used to make steel.

Australian Competition and Consumer Commission said that “Preliminary market inquiries indicate that the proposed joint venture may raise competition concerns in relation to the global seaborne and Australian markets.”

The regulator asked for further submissions by April 14 and will announce its findings on April 28.

The commission will study whether the venture, together with Vale SA, the world’s biggest iron ore producer, will have an increased ability to coordinate their supply decisions, the statement said.

BHP and Rio plan to combine mines, rail, ports and workforces in Western Australia’s Pilbara region into a 50:50 joint venture to save at least USD 10 billion. The deal needs approval from regulators in Europe, Japan and Australia.

(Sourced from Bloomberg.net)