Satellite image data fusion is an image processing set of procedures utilise either for image optimisation for visual photointerpretation, or for automated thematic classification with low error rate and high accuracy. Lithological mapping using remote sensing image data relies on the spectral and textural information of the rock units of the area to be mapped. These pieces of information can be derived from Landsat optical TM and JERS-1 SAR images respectively. Prior to extracting such information (spectral and textural) and fusing them together, geometric image co-registration between TM and the SAR, atmospheric correction of the TM, and SAR despeckling are required. In this thesis, an appropriate atmospheric model is developed and implemented utilising the dark pixel subtraction method for atmospheric correction. For SAR despeckling, an efficient new method is also developed to test whether the SAR filter used remove the textural information or not. For image optimisation for visual photointerpretation, a new method of spectral coding of the six bands of the optical TM data is developed. The new spectral coding method is used to produce efficient colour composite with high separability between the spectral classes similar to that if the whole six optical TM bands are used together. This spectral coded colour composite is used as a spectral component, which is then fused with the textural component represented by the despeckled JERS-1 SAR using the fusion tools, including the colour transform and the PCT. The Grey Level Cooccurrence Matrix (GLCM) technique is used to build the textural data set using the speckle filtered JERS-1 SAR data making seven textural GLCM measures. For automated thematic mapping and by the use of both the six TM spectral data and the seven textural GLCM measures, a new method of classification has been developed using the Maximum Likelihood Classifier (MLC). The method is named the sequential maximum likelihood classification and works efficiently by comparison the classified textural pixels, the classified spectral pixels, and the classified textural-spectral pixels, and gives the means of utilising the textural and spectral information for automated lithological mapping
