interim financial report, page-7

WEC are still in contact with Southern Power stations that are still using Leigh Creek Coal. This has been running down since 2002 and eventually we can expect a switch to Phillipson coal.

The Ingomar Trial Pit has about 10k tonnes of coal under cover that has been tested satisfactory from 2004 to 2010 trials.

All Phillipson Coal requires power washing due to very high sodium levels. There were two areas at the 'temporary' Phillipson Lake for washing or more likely washing at aquifers in the south of Phillipson. There may be some resistance to their use at some stage, led more by activists in NSW who are more up to speed than the sleepy eyed lot in Adelaide and Coober Pedy.

Ingomar Coal was originally earmarked for a Pig iron furnace South of Phillipson that collapsed after a trial furnace caught fire in 2002. The iron ore was to come from Hawks Nest, Red Kite and Peculiar Knob. Sold to WPG for peanuts by Brian Flannery and Co, they sold it to Arrium for $350 million.

It's a tough cookie Phillipson and may be a 2018 - 2022 project for oil from coal. Maybe a larger cash rich company will take an interest but I get the feeling WEC would welcome them with open arms.