The NSW Minerals Council will appeal federal treasurer Josh Frydenberg's decision not to direct the competition watchdog oversee charges at the Port of Newcastle.
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Mr Frydenberg's determination last month followed a National Competition Council recommendation against declaring the port.
In announcing its intention to appeal, the Minerals Council said the refusal of its application highlighted the inadequacy of the current declaration process.
"It is almost inconceivable that governments have been willing to allow such an important piece of national economic infrastructure to operate as an unregulated monopoly service provider," it said in a statement.
"This lack of oversight is a major reason why access arrangements between coal producers and the port operator remain unresolved and uncertain.
"These issues have become even more acute given the port's publicly stated ambition to significantly expand its container terminal operations. Ongoing uncertainty on future terms of access for coal sector port users represents increased risk due to potential container terminal expansion costs, including the potential price impact on future coal exports."
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In refusing the application Mr Frydenberg said he was not satisfied that declaring the port was in the public's interest or would result in increased competition.
A Port of Newcastle spokesman described the pending appeal as "the latest rotation of a regulatory and legal washing machine that has been in continuous operation for almost six years."
"These matters have been considered on a number of occasions since 2015 by national competition and regulatory bodies, who have found that declaration is not appropriate in these circumstances," he said.
"This appeal imposes further avoidable extensive time and financial impost on the parties involved and on public resources and regulators.
"Port of Newcastle has plans to turbo-charge the regional New South Wales economy. This is a continued unproductive drain on resources that could otherwise be directed to projects that put the Hunter on a firm foundation for the future."
The Minerals Council said it would pursue all options for regulatory oversight of the port that also delivered reasonable commercial outcomes for all parties.
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