Community and land use

Loy Yang Coal Mine

The Loy Yang brown coal mine is located south of Traralgon in the Latrobe Valley. It is assigned mining licence MIN5189. AGL acquired the mine and adjoining power station (Loy Yang A) in 2012 and is the licence holder.

Loy Yang is one of three Victorian mines gazetted as ‘Declared Mines’ under the Mineral Resources (Sustainable Development) Act 1990 (‘the Act’).

A declared mine is one that has been identified as having significant and complex environmental, social or economic risks, particularly in relation to mine rehabilitation and closure.

Declared mines are subject to greater regulatory oversight and must meet higher standards regarding rehabilitation planning and implementation as part of the mine closure.

Background

Loy Yang’s mine has served the two Loy Yang power stations (A and B) since their commissioning in the 1980s. Brown coal is extracted via open-cut mining and transported via conveyor belt to the nearby power stations for use in electricity generation.

In 2022, AGL announced plans to close the Loy Yang A power station and mine in 2035.

Current status

Rehabilitation

The Act and regulations require AGL to prepare and submit a Declared Mine Rehabilitation Plan by 1 October 2025.

This plan must describe how the Loy Yang mine site will be remediated and rehabilitated to a safe, stable and sustainable landform. It must also detail how risks will be monitored and managed, and how stakeholders and communities are to be consulted during the plan’s development and throughout the mine’s rehabilitation and closure.

AGL recently applied for additional time to complete the work involved in preparing its plan. In July 2025, the Minister for Resources granted AGL a two-year extension. The plan is now scheduled to be submitted by 1 October 2027. Community consultation will inform the plan’s development.

AGL has also applied under the Water Act 1989 for a new bulk entitlement to access surface water from the Latrobe River system for water-based rehabilitation of the Loy Yang mine. The Minister for Water’s decision on this application is expected in late 2025.

Regulatory compliance

Resources Victoria monitors AGL’s mining operations to ensure compliance with regulatory requirements pertaining to Declared Mines. This includes undertaking quarterly audits of mine stability, rehabilitation, environment and fire risk.

In addition to its routine audit program, Resources Victoria carries out inspections as needed and in response to concerns reported by community members.

Read more about regulatory compliance.

Enquiries

Enquiries about onsite operations and activities at Loy Yang mine should be directed to AGL via:

Community concerns and complaints

Emergency incidents, safety concerns, pollution events, evidence of non-compliance and other community concerns and complaints should be directed to the regulator responsible for the area it relates to.

Page last updated: 22 Aug 2025