1801 Lieutenant James Grant The presence of coal was the first of the natural resources that caught the eye of the European visitors to the region. Newcastle was officially discovered by Lieutenant John Shortland in 1797, but there is evidence that in 1791 a group of convicts who had escaped had "there found a quantity of fine burng (sic) coal", thus being, arguably, the first Europeans to discover coal in Australia. (see the 1791 account of James Martin above). In 1796 there were fishermen collecting coal pieces in the area and a number of individuals began selling it in Sydney. The interest generated within government circles in Sydney inspired Governor King to send an exploration party to the Hunter in June 1801 led by Lieutenant Grant and Lieutenant-Colonel Paterson to report on "where the most eligible place would be to form a settlement, both with respect to procuring coals and for agricultural purposes". --------- BOOK: The Narrative Of A Voyage Of Discovery, Performed In His Majesty's Vessel The Lady Nelson, Of Sixty Tons Burthen, With Sliding Keels, In The Years 1800, 1801, And, 1802, To New South Wales. By James Grant, Lieutenant in The Royal Navy