‘Deep coal’ seams grab attention

Beach Energy and Santos have pointed at the potential of the thick, gas-soaked coal seams that lie beneath the existing Cooper Basin gas fields, according to the Australian Financial Review.

Signs are emerging that relatively cheap well costs, the presence of valuable liquids and good permeability that would allow gas to flow may mean the coals offer a more economic source of gas than the shales and other unconventional plays targeted in the basin.

Speculation on FMG review of Cloudbreak

Standard Bank’s bulks analyst Melinda Moore has said that Fortescue Metals Group is believed to be considering closing its Cloudbreak mine in Western Australia as the falling iron price takes its toll on higher-cost sites, according to the Sydney Morning Herald.

In the bank’s daily commodities newsletter, Moore wrote: “FMG is rumoured to be considering reducing its output back to 120 million tonnes from as high as 180mt annualised in some shipment months this year, primarily by closing its higher cost Cloudbreak (40mtpa) mine, focusing on margins rather than volumes – as all miners should now be doing.”

FMG has denied the Cloudbreak rumour on Twitter, saying “the report is based on speculation from an analyst with no connection to Fortescue”

Wal King sparks Sundance Resources protest vote

Sundance Resources shareholders have narrowly approved the appointment of the controversial former boss of Leighton Holdings, Wal King, to their company, with more than 40% voting against him coming on board as chairman of the iron ore hopeful, according to the Sydney Morning Herald.

At a tense event, shareholders also gave the company's remuneration report its first strike, with 55.4% of votes swinging against the package.