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The Scaddan Lignite Energy project is located about 60 kilometres north of the town of Esperance and 10 kilometres east of the Kalgoorlie to Esperance highway, railway and gas pipeline, in the Southern region of Western Australia.
The town of Esperance, that is home to around 14,000 people, has an airport, regional power station and deep water port. The airport is situated approximately 40 kilometres south of the Scaddan Energy Project site. The Esperance deep water port is capable of berthing both Cape and Panamax class vessels.
Scaddan Energy Pty Ltd, the company developing the Scaddan Lignite Energy Project, is a privately owned Joint Venture company, involving Wesfarmers Premier Coal Limited, which has a 30 percent interest and Blackham Resources Limited with a 70 percent interest
The Scaddan Energy Project contains a coal resource of 1.04 billion tonnes that is effectively covered by around 210,000 hectares of land holdings held by the developing company. The lignite resource contained within the Scaddan Energy Project's tenements contains 56 percent moisture. The coalfield has been found and defined after the completion of drilling a total of 1,547 boreholes. 1,236 were drilled as open holes and 311 were cored. Blackham Resources Limited have two more exploration licences covering an area at Scaddan West.
The Scaddan mine site has an average seam thickness of eight metres and a below average strip ratio. The mine is deemed suitable for dragline waste removal and the conventional truck and shovel method of mining of the coal seam, with in pit crushing and conveying incorporated. All of which adds up to a very low mining cost.
In May, 2009, Scaddan Energy Pty Ltd, carried out an evaluation on the further development of the Scaddan Lignite Energy Project for the purpose of creating a coal to liquid (CIL) operation capable of producing up to 380 million barrels an ultra clean diesel fuel and associated oil products.
The Esperance Port is operated by the Western Australian Government owned, Esperance Port Authority. Following an upgrade in 2002, the port became the deepest port in southern Australia which makes it capable of handling ships of 180,000 tonnes (Cape Class Vessels) and Panamax class ships of up to 75,000 tonnes. Number three berth at the port is dredged to a depth of 19 metres and berths number one and two (that cover an area of 27 hectares) to a depth of 14.5 metres. The port is currently being used to export various minerals including iron ore and grain products. A 2007/08 report showed it exported over nine million tonnes and imported more than 700,000 tonnes during the 2007/2008 financial year. The imports were, in the main, made up of petroleum and fertiliser products.