AGL Loy Yang with 2,210 MW generates approximately 30% of Victoria’s power requirements every year and is an integral part of Australia's national electricity market. The Loy Yang mine supplies both Loy Yang A and Loy Yang B fuelling around 50% of the state’s energy requirements.

Project background

AGL Loy Yang is in the Latrobe Valley, 165 kilometres south east of Melbourne and was acquired by AGL in 2012. The power station and accompanying open cut coal mine cover about 6,000 hectares. The mine supplies coal to the Loy Yang A power station and the Alinta owned Loy Yang B power as the fuel to generate electricity. Each year about 30 millions tonnes of coal is produced.

AGL Loy Yang power station runs 24/7 and in 2014 we completed a $60 million integrated control and monitoring system (ICMS) conversion project that gave AGL Loy Yang state of the art digital controls.


Development and maintenance

The power station includes four 500+ megawatt turbo generators which were brought into service between 1984 and 1988. Upgrades through major maintenance programs and plant enhancements have taken generation capability from 2000 megawatts in the year 2000, to over 2200 megawatts today.

AGL recently completed a seven-year, $60 million, integrated control and monitoring system (ICMS) conversion project. The work saw all AGL Loy Yang operating units converted from ageing analogue systems to a state of the art digital control system and was vital to ensuring energy supply reliability to Victoria.

Back to top >>

AGL Loy Yang documents

You can view all AGL Loy Yang project documents in the document tab.

Community complaints and enquiries

If you would like to enquire or make a complaint about AGL Loy Yang, please feel free to contact us via the following channels:

AGL Community Complaints & Enquiries Hotline: 1800 039 600


Mail: AGL Community Complaints & Enquiries, Locked Bag 3013, Australia Square NSW 1215

You can find out more about how AGL engages with the community here and access the Community Complaints and Feedback Policy here.

Back to top >>

In this section

Community Engagement

AGL Loy Yang is committed to engaging positively and constructively with key stakeholders and the community and has a proven track record of successfully working with the local community on mine development related matters over 30 years.

For AGL, authentic community engagement is very important. We are committed to developing and maintaining a good relationship with the Latrobe Valley community.

AGL seeks to understand and respond to the interests and concerns of our stakeholders. Ensuring we seek input from the people who are affected by our decisions and then reviewing this feedback, enables better decisions to be made.

AGL’s key commitments include:

  • Understanding our community – we combine local presence, knowledge and research to understand the community in which we operate.
  • Listening – we will seek, listen and respond to feedback from our community and stakeholders.
  • Using a range of communication channels that suit community needs – we seek to understand how stakeholders like to be informed and involved in our projects.
  • Keeping it local – we take opportunities to employ local people, use locally sourced products, involve local communities and build local relationships.
  • Showing not telling – we provide opportunities for stakeholders to see and experience how we operate, including site tours, equipment inspections and community engagement activities.
  • Doing what we say we’ll do – we build trust by delivering on our promises. We record, measure and report on our commitments to ensure we are keeping them.
  • Building internal capacity – we review and improve our communication activities so our people are informed, engaged and understand the commitments we make.

AGL acknowledges that individuals and community groups may have different interests.

Since the early 20th century, the power industry of the Latrobe Valley has provided jobs and economic sustainability to the region. The future closure of the remaining mines and stations has the potential to impact the community and is a key point of interest to the community.

AGL has committed to being involved in the transition of the economy of the Latrobe Valley and is working with partners from government, education and industry to provide the community with the tools and pathways with which to successfully navigate this transition.

AGL Loy Yang is currently undertaking consultation with key stakeholders regarding the appropriate model to oversee community engagement activities.

This includes the development of an AGL Loy Yang Community Dialogue Group to sit alongside our Environmental Review Committee (ERC).

Each year AGL Loy Yang holds a community forum to provide an update on mining and exploration activities and respond to community concerns.

AGL Loy Yang continues to meet and engage with local stakeholders including federal and state members of parliament, Latrobe City Council, Committee for Gippsland, government departments and community groups. Regular updates on operations are provided as AGL remains committed to open, honest and transparent communication within the community it operates.

Back to top >>

Operational matters

Integrated Mines Rehabilitation

AGL Loy Yang is a member of the Integrated Mine Research Group (IMRG) which was formed in June 2016 by AGL Loy Yang, Engie Hazelwood and Energy Australia Yallourn to fulfill requirements from the Hazelwood Mine Fire Inquiry Recommendation No. 18.

The IMRG held regular meetings and consulted with stakeholders to develop a list of research projects that will be undertaken as part of the 10 year research plan. The funding for each IMRG project will be determined on a project by project basis.

Worker Transition Scheme

AGL Loy Yang was the first generator to sign up to the Worker Transition Scheme which is an agreement with the Victorian Government and unions to allow ex-Hazelwood workers to transition to other generators including Loy Yang A station and mine.

Through the scheme AGL receives funding from the State Government to onboard ex-Hazelwood employees.

The first ex-Hazelwood worker started at AGL Loy Yang on 1st May and by the end of 2017 we would have employed around 40 former Hazelwood employees.

Environmental matters

Environmental Review Committee (ERC) Meeting

The ERC which includes community and regulator representatives, meets quarterly to evaluate AGL Loy Yang’s environmental performance.

Recently, the ERC has taken a strong interest in community matters, and has been filling the role of Community Dialogue Group while this model is developed and implemented at AGL Loy Yang.

Community issues discussed through the year include: transition, rehabilitation, community engagement plan for 2016/17 and 17/18, and Community Dialogue Group (CDG) implementation.

Latrobe Valley Regional Rehabilitation Strategy (LVRRS)

The LVRRS was formed as part of the response to the 2015/16 Hazelwood Mine Fire Inquiry.

The inquiry noted that for rehabilitation of Latrobe Valley’s three brown coal mines the pit lakes and the partial backfill below water table are currently most viable options.

The LVRRS will examine and address some knowledge gaps associated with the pit lake rehabilitation option.

The Strategy will involve extensive geotechnical, groundwater and surface water studies, the assessment of potential regional impacts on the environment, and the evaluation of future land use options.

The Victorian Government will provide $12.6 million to fund the preparation of the Strategy which will be led by the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) in partnership with the Department of Environment, Land, Water and Planning (DELWP) and oversight by the Victorian Government’s Rehabilitation Commissioner.

The Strategy will be in place by June 2020.

The Latrobe Valley Mine Rehabilitation Advisory committee will play a key role in community engagement and act a as conduit to broader stakeholder engagement during the life of the Latrobe Valley Regional Rehabilitation Strategy.

AGL Loy Yang's Environment Business Partner Sarah Gilbert is on the committee. She has an engineering background and has worked in the environment field for over 15 years, both for the environmental regulator and private industry.

Back to top >>

Stakeholder engagement

AGL Loy Yang continues to meet and engage with local stakeholders including federal and state members of parliament, Latrobe City Council, government departments and community groups. Regular updates on operations are provided as AGL remains committed to open, honest and transparent communication within the communities it operates.

Committee for Gippsland

In 2017, AGL Loy Yang signed on as a foundation member of the Committee for Gippsland.

The committee is one of the region’s leading advocacy groups and has had a positive influence in terms of securing major investment in the Gippsland area. Its report titled Our Region Our Future: Securing an Economic Future for Gippsland and the Latrobe Valley, looked at transition to a low-carbon future and what that means for the region. AGL provided critical input into this report and we support the industry recommendations.

AGL Loy Yang attended the Committee for Gippsland AGM in 2017, which regularly meets to engage and collaborate on transition for the Latrobe Valley community.

International Workers Memorial Day

This year AGL Loy Yang took part in International Workers Memorial Day with head of mine Nigel Browne guest speaker at the event organised by Gippsland Asbestos Related Diseases Support group.

Held annually on the 28th April International Workers Memorial Day commemorates those who lost their lives to work-related death.

Nigel spoke about AGL Loy Yang’s safety vision of “zero harm to our people and environment”, the importance of physical and mental wellbeing, and how AGL believes everyone has a role to play in ensuring safety in the workplace.

Wreaths were laid to honour those people who have sadly lost their lives in the workplace.

Roundtable to discuss industry and skills

AGL Loy Yang took part in an industry and skills roundtable discussion hosted by Minister for Training and Skills Gayle Tierney and Victorian Skills Commissioner Neil Coulson.

As a key contributor and large employer in the region AGL Loy Yang joined other businesses, education providers and local government representatives to discuss the skills needed in as the Gippsland region moves forward.

Back to top >>

AGL Loy Yang Community Fund

AGL Loy Yang is a significant contributor to the regional economy and supports a range of Latrobe Valley community groups through our Community Fund. The fund offers financial and other support to community groups in the Latrobe Valley region under our Community Support Program.

This program is administered by an employee committee at AGL Loy Yang. The committee operates within stringent criteria to ensure funds and in-kind donations are distributed to projects or initiatives that have a clear community benefit.

AGL Loy Yang continues its long association with a number of organisations including:

  • The Traralgon Tennis International
  • North Gippsland Football Netball League
  • Traralgon junior cricket and football league
  • The Smith Family (Gippsland project)
  • Latrobe Theatre Company, and
  • the City of Traralgon Band.

All requests for donations should be submitted on the AGL Loy Yang community support application form. Please contact Corporate Communications for any more information about the AGL Loy Yang Community Support Program.

Community Support Application Form

North Gippsland Football and Netball League

In 2016 we signed a two-year naming rights sponsorship deal with the North Gippsland Football Netball League (NGFNL). AGL Loy Yang is located in the centre of the NGFNL catchment area and many of our employees and their families are involved in NGFNL clubs, making this partnership a great fit for us.

In 2017, we approached AFL Gippsland and the NGFNL about the concept of a local pride cup as we know how important it is for leadership in all areas, including business and sport, to openly and proudly promote inclusion and diversity. And on July 30th 2017 we helped AFL Gippsland deliver the first ever Gippsland Pride Cup. In support of this AGL Loy Yang lit up our cooling towers with a rainbow and logo promoting our support of the first ever Gippsland Pride Cup.

AGL Loy Yang Traralgon Tennis International

In January 2018 we will celebrate the 25th year of the Traralgon Tennis International tournament. Some of the most famous past winners include Roger Federer, Nick Kyrgios and Alex Zverev.

The Traralgon Tennis International supports our local economy while highlighting our region to a global audience.

Sponsoring AGL Loy Yang Family Members

AGL Loy Yang is proud to offer sponsorships up to $250 for employees and their families to support their sporting, artistic or theatrical endeavours.

In this section


As a major power generator and mine, AGL Loy Yang recognises it has a significant responsibility to manage the environmental impacts of its operation.

AGL Loy Yang conducts its business in a way that reduces, as far as practicable, the environmental impact of its operation.

AGL Loy Yang pursues efficiency improvements across its business and works in cooperation with numerous organisations, government departments and industry partners to reduce its carbon footprint.

An Environment Review Committee, including community and regulator representatives, meets quarterly to evaluate AGL Loy Yang’s environmental performance.

AGL Loy Yang Mine Sustainability Report 2017/2018

AGL Loy Yang’s Mine Sustainability Report for 2017/2018 financial year can be viewed here. This report has been prepared to comply with a notice received under section 26 of the Mineral Resources (Sustainable Development) Act 1990 and includes sections on environmental management, rehabilitation, and communication engagement.

Back to top >>

Air quality

Electrostatic precipitators remove more than 99% of ash and dust from the coal burning process before the remaining gases and moisture pass to the atmosphere through the high chimney stacks.

Online continuous monitoring of power station chimney discharges combined with remote air quality measuring stations ensure discharge standards are maintained.

A number of ambient air monitoring stations across the Latrobe Valley measure air quality within the region.

Visitors to the Latrobe Valley area often mistake the water vapour coming from AGL Loy Yang’s hyperbolic-shaped cooling towers for smoke. This steam is caused by rapid cooling of high temperature water for recycling.

AGL Loy Yang is a contributing member and participant of the Latrobe Valley Air Monitoring Network (LVAMN). The LVAMN operates and maintains ambient air monitoring stations that measure air quality within the Latrobe Valley region. The LVAMN also undertakes air quality compliance assessments funded through industry member contributions.

Back to top >>


AGL Loy Yang has implemented a number of water recycling and conservation measures to reduce its water consumption and minimise discharges to the nearby Traralgon Creek. AGL Loy Yang carefully manages and monitors its discharges to Traralgon Creek in accordance with its EPA licence.

Environmental monitoring and compliance

AGL Loy Yang operates under a licence that is regulated by the Environment Protection Authority Victoria. The licence sets out a number of conditions with which we must comply including: limits on the allowable air emissions from the power station; limits on the contaminants in the water discharged to Traralgon Creek; environmental monitoring of air and surface water discharges; and submission of an annual performance statement to the EPA.

Back to top >>

Pathway for the gradual decarbonisation of our generation

In April 2015, AGL revised its Greenhouse Gas Policy which presented a pathway for the gradual decarbonisation of our generation portfolio by 2050 along with a commitment not to extend the operating lives of our existing power stations. This means that the Liddell power station is the first scheduled power station to close in 2022 with Bayswater and Loy Yang to cease operation in the 2030s and 2040s.

For more information read:

Back to top >>

Environment, planning and heritage

AGL Loy Yang has thorough knowledge of the planning, environment, and heritage requirements associated with the RL2015 area, and will consider these for any mine expansion or project development. Investigation will follow the following steps:

Exploration work planning

An environmental management plan will be developed to inform any exploration and base line monitoring activities and will be incorporated into the work program.

Native Title

Discussions will be held with Native Title owners prior to any exploration on Crown Land and an agreement will be sought for the Retention Licence.

Back to top >>

AGL Mining Licence

AGL Loy Yang holds Mining Licence 5189 in the Loy Yang Coal Field, to the southeast of Traralgon, Victoria.

The licence was issued on 6 May 1997 and expires on 6 May 2037. The open cut operations of the AGL Loy Yang mine are covered by this licence. The Loy Yang A and B power stations are located on an area excluded from the licence.

The AGL Loy Yang Partnership currently owns the mine, which provides coal to the 2200 MW Loy Yang A Power Station (owned by the AGL Loy Yang Partnership) and the 1050 MW Loy Yang B Power Station (owned by Alinta) and other minor customers. The power stations currently fed by the Loy Yang Mine provide approximately 50% of the total coal-fired electricity generated in Victoria.

The mine operates 24 hours a day, 365 days a year and is currently approximately 200m deep, 4.5km long and 2.5km at its widest point.

Work Plan Variation

Between August and November 2016 extensive community consultation was conducted on the Work Plan Variation which covers areas including community engagement, environmental impacts, fire risk, rehabilitation, operations and transition to closure.

The Work Plan Variation combines a Risk Assessment Management Plan with the Work Plan. All feedback from consultation was carefully considered and some of that was worked into the revised Work Plan Variation.

The most common theme emerging from this consultation related to rehabilitation and the end use concept of the site.

The Draft Work Plan Variation was submitted to the Department in December. The Work Plan Variation can be viewed here (file in excess of 80MB), and feedback can be passed on via the details at the bottom of this page.

Back to top >>

AGL Retention Licence RL2015

The former Victorian Department of State Development, Business and Innovation (now the Department of Economic Development, Jobs, Transport and Resources) notified AGL Loy Yang on 6 January 2014 that it has been granted priority over the Retention Licence RL2015 covering the Flynn area.

AGL Loy Yang is in a strong position to cater for new coal development opportunities, given its natural advantages in terms of location, flexibility to expand and the extent of works undertaken throughout the life of the mine to date to position itself for future growth. To enable this growth to occur, AGL Loy Yang needs to maintain access to the existing coal resources from within the current Mining Licence Area (MIN 5189) and the area previously held under an Exploration Licence.

AGL Loy Yang has submitted an application to convert the existing Exploration Licence, which abuts to the east of Mining Licence MIN 5189 into a Retention Licence (RL2015).

Download the application area for RL2015.

Retention Licence Work Program

AGL Loy Yang (previously called Loy Yang Power Management Pty Ltd) was granted EL4683 on 14 December 2005 and since that time has worked in accordance with the agreed work plans.

AGL Loy Yang proposes to undertake the following program of work under RL2015:

  • Further exploration work
  • Resource delineation and coal testing
  • Hydrogeological investigation
  • Hydrological studies
  • Geotechnical investigation
  • Project discussions, negotiation and feasibility studies

Further Exploration Work

Precise details of the exploration activity will be provided in a work program for Government approval. The work program will be carried out under an occupational health and safety management plan as well as task specific requirements. No drilling will be undertaken without the required Government approval.

Resource Delineation and Coal Testing

The majority of the work required has already been completed in the Exploration Licence phase and earlier. Any new exploration drilling if deemed necessary would have cores logged and sampled for lignite and other testing. During exploration, site disturbance will be kept to a minimum and disturbed sites will be rehabilitated according to an environmental management plan that will be provided with the draft work program.

Hydrogeological Investigation

Data from existing aquifer depressurisation operating pump and observation bores will provide the basis for modelling in the RL2015 area. The coal resource exploration bores may also be able to be utilised for the monitoring system.

Hydrological Studies

An assessment of the surface hydrology within the RL2015 area will be undertaken utilising rainfall and surface information to identify and aid the development of water management strategies. This study will also inform the interaction between surface water, groundwater and any sensitive wetland areas.

Geotechnical Investigation

Samples will be taken for testing to ascertain the strength of materials likely to be encountered in the mine and in the mine batters. The material strength, particularly the shear strength, will influence batter angle design. Sampling and testing of materials from these boreholes will examine the following:

  • Strength of overburden materials (to assess mining requirements and provide information for concept design of overburden dumps).
  • Direct shear testing within lignite seams – joint and direct shear testing.
  • Direct shear testing within interseams - direct shear testing.
Project Development

Since the initial grant of the exploration licence there has been an increasing level of interest from industries wishing to establish in the region and transform raw brown coal to value added products for domestic and export use. AGL Loy Yang is one of the few entities in Victoria with experience in the commercial supply and delivery of brown coal to third parties, and has therefore received many approaches from potential customers.

After the grant of RL2015, AGL Loy Yang will continue to work with project proponents in the development of demonstration and commercial plants utilising improved coal processing technologies able to produce higher value products from brown coal. Project proponents are expected to include proponents for the following types of projects:

  • Coal drying and possibly briquetting;
  • Gasification and further processing to higher grade products;
  • Pyrolysis, producing gases, low volatile solid fuels, and tars;
  • Hydrological studies
  • Hydrothermal dewatering; and
  • Micronised refined coal (MRC).

Prospective project proponents will be expected to complete feasibility studies to confirm the compatibility of any project with AGL Loy Yang resources and sites, and to ensure that any project will be able to meet best practice from an environmental performance perspective.