AGL Loy Yang has welcomed the Victorian Government’s decision to extend its mining licence to 2065.

AGL Loy Yang general manager Steve Rieniets said the extension provided certainty for employees and time to properly rehabilitate the site following closure of the Loy Yang A power station no later than 2048.

“Although we are progressively rehabilitating we estimate we would need a further 15 years after coal operations cease to conduct final rehabilitation,” he said.

Mr Rieniets said the mining licence extension aligned with the company’s support for an orderly transition to modern cleaner technologies such as renewables, as set out in AGL’s Greenhouse Gas Policy.

“We believe the five year notification period is important. Giving as much notice as possible ahead of plant closure enables replacement investment to occur and avoids the dramatic market impacts observed following the closure of the Hazelwood plant, with five months of notice.”

In applying for this licence AGL has made commitments to the Victorian Government that it will:

• Continue to invest in the Loy Yang A power station and mine;
• Provide five years notice of closure of Loy Yang A, which is two years more than the Australian Energy
• Market Commission will include in its planned rule change to require three years notice of closure;
• Continue to work with the Latrobe Valley community and Loy Yang workforce to build the foundations for new opportunities and diversify the economy in the transition towards a carbon constrained future; and
• Support the transition of the AGL Loy Yang workforce to new opportunities prior to and following closure.

You can also read an AGL blog about the mining licence extension at: http://aglblog.com.au/2018/01/loy-yang-mine-licence-extension-to-allow-time-for-rehabilitation/

About AGL

AGL is committed to helping shape a sustainable energy future for Australia. We operate the country’s largest electricity generation portfolio, we’re its largest ASX-listed investor in renewable energy, and we have more than 3.6 million customer accounts. Proudly Australian, with more than 180 years of experience, we have a responsibility to provide sustainable, secure and affordable energy for our customers. Our aim is to prosper in a carbon-constrained world and build customer advocacy as our industry transforms. That’s why we have committed to exiting our coal-fired generation by 2050 and why we will continue to develop innovative solutions for our customers.