The known coal resources of South Australia are either of poor quality, or expensive to extract, or both. Export quality coal occurs only at great depth in the remote north of the State; the balance of the State's coal resources are suitable only for local electricity generation. Currently there is only one coal mine in the State, at Leigh Creek. This provides fuel for approximately 34% of the State's electricity generation, the balance being fuelled by natural gas. In the near future, new fuel sources must be developed to augment diminishing supplies of natural gas, and to cater for increasing demands for electricity. The South Australian Government has determined that future electricity generation will be based on the combustion of local coals. The geological and geographical environment of the known coal deposits and the quality of these coals are such that the most up to date and innovative technology must be applied to both extraction and combustion processes. The Government, the Electricity Trust of South Australia, and several Australian and overseas companies have embarked on an extensive research and development programme to ensure that these otherwise useless resources can be developed to the benefit of the State.