Lignite (Brown Coal)
What is Lignite?
Lignite, often referred to as brown coal, is the lowest rank of coal, due to its low energy content and high moisture content. Currently, lignite is used almost exclusively for power generation; in Victoria, for example, around 85% of the State's electricity is sourced from lignite-fired power stations in the Latrobe Valley.
Commercial Uses
Many commercial uses of Lignite exist today, apart from its traditional use as a low-cost feed to power stations (direct use). Lignite can be physically and chemically beneficiated into higher-rank coals, oil products via direct pyrolysis, and it can be gasified and subsequently synthesised into a liquid fuel.
IER's Lignite Resources
Exploration Licence 4416 ('EL 4416') is an extensive licence that covers an area of over 3,800km2 in the Gippsland Basin of southeast Victoria. According to an independent report by AMC Consultants, EL 4416 contains a JORC-compliant resource of around 16.4 billion tonnes of lignite, within three deposits.