Steelmakers in Japan have voiced concerns over global coking coal supply monopolization by BHP if it goes forward with the possible takeover of Anglo American.
Australia is the world's biggest exporter of coking coal and top supplier to Japan, making up around 60% of its imports, and both BHP and Anglo are the two largest producers.
"BHP already has a large share of the supply of high-quality hard coking coal in the seaborne trade, and we will take measures to ensure that further oligopolisation will not impede sound price formation and stable supply," Reuters quotes JFE Steel spokesperson as saying.
According to sources familiar with the matter, Representatives of Japanese steelmakers met with government officials in Queensland, Australia, and raised concerns about the deal which once closed, would concentrate the world's top quality coking coal mines in the hands of BHP.
"BHP needs to explain to Japanese steelmakers and the market more broadly how it will ensure the ongoing supply of steelmaking coal remains competitive," said Queensland Deputy Premier and Treasurer Cameron Dick.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
