Sydney water supply at risk if longwall mining damages swamps

Environmentalists claim coal companies could pay “a few lousy dollars” to damage sensitive swamps that provide pure drinking water to millions of Sydneysiders if mining changes proposed by the Baird government proceed, according to the Sydney Morning Herald.

The proposal would allow coal mine operators to “offset” damage such as sinking or cracked swamps, water loss and effects on threatened animals by paying money into a government fund or other measures that green groups say will not make up for the destruction being wrought.

Michelmore slams RBA push for short-term investment

One of Australia's most powerful resources executives, MMG’s Andrew Michelmore, has rejected the Reserve Bank of Australia's call for companies to accept lower returns on investment, arguing it would be irresponsible for miners to load up on cheap debt at a low point of the commodities cycle, according to the Sydney Morning Herald.

Reserve Bank governor Glenn Stevens has expressed his frustration that companies have failed to respond to lower interest rates by lowering their “hurdle rates” for expected profits on investment.

Gold-fund holdings at lowest in four months

Investors sold gold through bullion-backed funds, cutting holdings to a four-month low, on speculation that the Federal Reserve is getting closer to raising interest rates, according to the Australian Financial Review.

Assets in exchange-traded products backed by the metal dropped 2.4 tonnes to 1599.5t as of Monday, according to data compiled by Bloomberg. Holdings slipped 4.8% since late February and are at the lowest since January 14.