Australia is on the path to be the world's largest liquefied natural gas producer after Chevron signed off on its $US29 billion Wheatstone project.

The Australian share market closed at a 2-year low, with major indices closing below the significant 4,000 point mark amid fears of a global recession.

Shares in ASX-listed Blackgold International rose after the Chinese coal producer acquired the holder of a coal mine in Chongqing municipal province.

Despite months of bickering, Auzex Resources and GGG Resources now insist that they are getting along and their new gold company is on track.

The RBA says Australian banks are in good shape but has warned lending standards should not be lowered in a bid to boost balance sheet growth.

The financial doom and gloom presents a silver lining for would-be home buyers, with a building society offering a fixed-term mortgage under six per cent.