why is anglo american selling dawson?, page-3

goodaye Homey,
WCL did get a really good buy in the Dawson field.
i think Anglo got out because:
- it is a miner first; not a CSG explorer or producer-(that is in the presentation)
- as for dud asset , you will see that, not only did its J/V partner Mitsui not only retain its holding, but it increased its stake and exposure! So asset is obviuosly a good one
- i suspect that the Dawson investment is only a pin-prick to Anglo - it is probably too small for them
- i also suspect that the fact that the GSA contract had a shortfall, and I think the legal process for Anglo to sort out the liquidated damages issues was a big negative for them. They did not have the experience and interest to go drill up further gas to fulfill their contract obligations. remember that WCL knows the ground well because Paranui is right next door.
- Anglo will still have their coal mine right next door to Dawson

AS for CSG vs UCG i am no expert.
What worries me wrt UCG is the fact that they burn coal underground, and I wonder about the environmental effects.
Also, I think UCG produces Co2, which I think needs to be sequestered back underground.
Also not sure of costs.

Maybe someone else can enlighten us?

regards