Loy Yang Mine and Power Station

In 1976, the Victorian Parliament authorised the Loy Yang Project, which is located several kilometres south of Traralgon. A 4000 MW power station was to be fuelled from an adjacent open-cut coal mine. Site works commenced in February 1977. In 1982, the first dredger at the Loy Yang open-cut was commissioned and commercial operations commenced with the removal of overburden on 1 October 1982. The first coal deliveries occurred in July 1983, with commercial operation of the first 500 MW power unit officially on 30 June 1984 (Vines, 2008).

In 1996, the sixth 500 MW power unit was handed over for full time operation. Coal output averaged 30.7 Mt over the calendar years 1998 and 1999. Currently, AGL’s Loy Yang Mine has an average annual coal output of between 28 and 30 Mt. In 2003, the Hyland Highway was diverted over a length of about five kilometres to allow for expansion of the open-cut to the east and south (Vines, 2008).

The coal mine at Loy Lang is the largest mine in the Latrobe Valley, supplying coal to two adjacent power stations: Loy Yang A and Loy Yang B. Loy Yang A is owned by AGL Energy Limited and Loy Yang B is jointly owned by GDF SUEZ Australian Energy and Mitsui and Co Ltd. These two power stations have combined maximum electricity generation of about 3236 MW. AGL’s Loy Yang A power station (over 2200 MW capacity) produces enough electricity to supply over 2 million Australian households (AGL, 2015). Loy Yang B supplies about 17% of Victoria’s power needs (Department of Primary Industries, 2010).

The open-cut 650 ha coal mine at Loy Yang produces approximately 30 Mt of brown coal per year. The mine includes four coal dredgers and two transport conveyors (Department of Primary Industries, 2010).

Last updated:
6 October 2016
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Product Finalisation date

22 June 2016