This engineering technical report discusses at a basic level the current feasibility of using Lake Phillipson coal for electrical power generation, with the particular aim of determining those factors requiring more detailed evaluation in the future. The design, construction and commissioning time scale provided by the proponent has been used by the authors for formulating a mining plan for the supply of coal from the Lake Phillipson deposits to such a power station. From the presentation, the cost of power generated for a particular coal fuel cost, under certain engineering conditions assumed for the report, can be estimated. Some of the controlling assumptions made are as follows: (a) there should be a 2000 megawatts base load station. This size is related to the estimated requirements of a proposed 6000 tonnes Separative Work Units capacity Uranium Enrichment Plant (using the gaseous diffusion process). The load characteristics for such a plant have not been considered. (b) the project will have an installed generating capacity at 3000 megawatts (for the 2000 megawatts base station), since for this study the station is assumed to be independent of the existing South Australian power grid, and so a 50% reserve capacity is provided. (c) there must be provision of data to permit the comparison of sites for said power station at either Lake Phillipson or Port Augusta. These locations were nominated to allow cost comparisons to be made for a station located at the mine site versus one built at the coast, and to highlight problems related to each of these locations. (d) the installation design should permit transmission of the station's entire power output to the Eastern States grid. This operating requirement was included to provide broad capital estimates and comments on the technical aspects of such transmission. (e) coal cost and transport cost estimates should be provided. Based on likely power station coal fuel consumption rates of either 5 million or 10 million tonnes per annum, a range of coal production costs (from $6 to $19 per tonne at mine site) and railway transport costs to Port Augusta ($5 to $9 per tonne) was selected to allow the consultants to prepare a graphical presentation of estimated cost of power generation compared to coal cost. When definite coal production costs are developed, these can be applied to the graphs to estimate associated power costs. (f) adequate cooling water volumes and quality will be available at both Lake Phillipson or Port Augusta. This assumption had to be made to allow the basic study to get underway, although the consultants stipulate that at Lake Phillipson a suitable supply, presently undefined, will need to be proved before a power station located there can be further considered. Present indications are that the quality of groundwater available from dewatering of the West Basin deposit would preclude its direct use for cooling systems. (g) coal quality estimates be used which have been compiled from analyses done on the 'F' seam of the Main Basin deposit; this is the only detailed information currently available, but is considered to provide a reasonable guide to coal properties for combustion purposes. Ultimately, however, to safely design for the burning of Lake Phillipson coal in a power station, it will be necessary to conduct detailed sampling and analyses of the coal units from the selected mining area, preferably leading to the burning of a bulk sample in an existing power station. The characteristics of the coal related to its sodium, potassium and magnesium content are considered to require most attention in the future due to their influence on ash fusion properties. The pronounced content of these elements possibly results from the high salinity of the groundwater in aquifers associated with the coal seams.