You have requested a statement of the Department of Justice's antitrust enforcement intentions with respect to the proposal of the three requesting firms to form a joint venture entity that would procure and transport barite from China.
China is the world's largest barite producer, accounting for about a third of total production.
About 60 percent of barite used in drilling fluids purchased in the U.S. is imported. According to your business review application, firms seeking to import barite from China have recently encountered several serious problems. You assert that, recently, supplies of Chinese barite have failed to meet the quality requirements of U.S. purchasers. As a result, U.S. producers have had to undertake expensive actions to counteract the reduced quality of the Chinese barite. U.S. purchasers also have encountered shipping reliability problems with respect to Chinese barite.