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Loy Yang mine rehabilitation

As part of AGL's transition, we are planning to achieve a safe, stable and sustainable future for the site of the Loy Yang Mine after the planned closure of the Loy Yang A Power Station in 2035.

Photo of aerial view of Loy Yang mine

About Loy Yang rehabilitation

AGL’s Loy Yang Mine has played a key role in generating electricity for Victorians for almost four decades.

As part of our transition to renewables, we are planning now to achieve a safe, stable and sustainable future for the site of the Loy Yang Mine after the closure of the Power Station in 2035.

Technical studies currently indicate that repurposing the coal mine pit as a full lake is the most viable rehabilitation option for the Loy Yang Mine.

We’re continuing further technical studies to investigate options.

Application for Bulk Water Entitlement

We require access to surface water to build a lake to support final mine rehabilitation.

We have applied for a Bulk Water Entitlement (BWE) to access surface water from the Latrobe River system for water-based rehabilitation.

A BWE is a legal right to access and user water for a specific purpose.

Terms of our application

The conditional amount of water we have sought to use each year under a new BWE for rehabilitation is a maximum volume of 35.8 GL. This figure is the total of the historical average annual volume of water used for power generation at the two power stations (Loy Yang A and Loy Yang B) sourcing coal from the Loy Yang mine.

We have taken advice from Government reports that highlight how we can minimise impacts on other water users and the environmental health of the Latrobe river system.

These principles are set out in the Latrobe Valley Regional Rehabilitation Strategy (LVRRS) for good stewardship of the Latrobe River system.

Placing conditions on access to water for mine rehabilitation links water availability to climate conditions, and helps ensure that any surface water accessed for mine rehabilitation will not diminish the water entitlements of existing users and values.

The specific conditions for our application to help maintain the health of the river system include:

  • The taking of water would be restricted to the wettest months in each year (June to November);
  • A threshold will be in place to prevent the diversion of winter-spring baseflow in the Latrobe River;
  • A limit will be in place on annual releases from Blue Rock Reservoir; and
  • Surface water would be available for mine rehabilitation purposes for a period of up to 30 years from the initial supply date (which AGL intends to be from 30 June 2035 onwards, following the closure of the LYA PS) or until 2065, whichever is earlier
     

Applications relating to our rehabilitation plans are now live for public comment, closing 15 December 2024:
https://engage.vic.gov.au/potential-water-access-for-latrobe-mine-rehabilitation

Public drop-in information sessions

We are running public drop-in information sessions as we plan to remediate the Loy Yang mine after the closure of Loy Yang A power station in 2035.

Our upcoming information sessions are:

Traralgon Centre Plaza

Wednesday 30 October 3:30pm - 5:30pm

 

Saturday 16 November 10am - 12pm

Traralgon South Community Hall

Cats Drive, Traralgon South

Thursday 31 October 3:30pm - 5:30pm

Morwell International Rose Garden Festival

Saturday 9 November 11am - 4pm

Online

Friday 8 November 1pm - 2pm


Wednesday 13 November 5pm - 6pm

To receive a link for an online session, or if these dates don’t suit but you’d like to learn more, please email AGLCommunity@agl.com.au or call 1800 039 600 and select Loy Yang.

Rationale for the pit lake

Filling the pit with water promotes stability as the weight of the water stops ground movement, and covering the coal with water reduces risk of fire.

A lake would create new habitats for wildlife and maximises opportunities for the mine pit to be useful for a range of future purposes, and for suitable areas to be accessible to the public.

We understand the importance of further exploring and considering potential closure options for the mine void to inform the best rehabilitation solution, and will continue to further study this.

Photo of dredger in the Loy Yang mine

How much water is needed?

It’s difficult to estimate expected annual fill rate for the pit lake. These figures are an example of estimated water usage:

  • Total Water Volume required to fill the mine void ~1087GL
  • Fill Time of 22 Years
  • Surface Water Required ~ 630GL
  • Ground Water Required ~ 462GL
  • Evaporation (in total over the fill Period) ~ 90 GL
  • Evaporation for Top Up Requirements ~ 6GL/year

Ongoing planning and engagement

AGL is preparing and will submit a draft Declared Mine Rehabilitation Plan (DMRP) to the Victorian Government for review. We will be required to undertake further environmental and regulatory assessments during the closure and rehabilitation planning process.

The development and submission of the DMRP in must include and reflect evidence of community and stakeholder consultation in relation to rehabilitation of the mine. We are committed to ongoing stakeholder consultation in planning for rehabilitation.

We will be conducting a range of engagement opportunities over coming months to invite the community to receive information and ask questions about our plans for water-based rehabilitation, which will be advertised in the Latrobe Valley region and listed here.

Further information

Visit the Department of Energy, Environment and Climate Action (DEECA) Bulk entitlements page for more information about bulk entitlements and how they are controlled.

Visit the Mine Land Rehabilitation Authority (MLRA) website for information on coal mine rehabilitation in Victoria’s Latrobe Valley – including videos, fact sheets and FAQs.

Feedback

If you have any feedback for AGL about Loy Yang mine rehabilitation plans, please fill in this form and we will contact you.

AGL Loy Yang Rehabilitation Feedback form

Community complaints and enquiries

AGL understands that we don’t always get it right, and we want to be informed when we don’t. If you would like to provide any feedback, good or bad, or simply ask some questions, please feel free to get in touch via the following channels:

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Complaints and Enquiries Hotline

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Mail

AGL Community Complaints & Enquiries,
Locked Bag 14120 MCMC,
Melbourne VIC 8001

Learn more  about how we handle general customer complaints on our complaints page.