In about 1955, test bores for coal were made at Anglesea by Roche Brothers, who were then operating a coal mine at nearby
Wensleydale, where the reserves were dwindling. An extensive coal deposit was found two kilometres to the north of the Anglesea township, and mining commenced in 1959 to supply brown coal to industry and institutions in the Geelong area. The mining rights were taken over by
Western Mining Corporation (WMC) in 1961 to supply the power station planned by Alcoa of Australia. The Mines (Aluminum Agreement) Act of 1961 granted Alcoa a 50year exclusive right to explore and mine over some of leasehold land in the region. After further drilling investigation, WMC relocated the mining operation to the east of the original mine, closer to the power station site and providing access to a larger coal reserve of . The total thickness of the coal seams is about , with total economic mineable reserves estimated at in the upper seam, and a further in lower seams. In 1992, the overburden to coal ratio averaged around 2.5 to 1, with an average coal thickness of . Alcoa outlined plans to expand the footprint of the mine by approximately 50 percent, taking the total disturbed area from approximately , from about 2016. , approximately of coal had been mined, with about of brown coal being extracted annually to feed the power station that consumed of pulverised brown coal an hour. The coal at Anglesea has a high quality heat value when compared to other brown coals used to produce electricity in Victoria, but has a much higher level of sulphur, at around 3%, resulting in high levels of
sulfur dioxide (SO2) being emitted.
Carbon Monitoring for Action estimated that the power station emitted of
greenhouse gases each year as a result of burning the coal. The Anglesea power station drew its cooling water from six sub-
artesian well bores, supplemented with
rainwater. With the closure of the Point Henry Aluminium smelter, Alcoa applied for and was granted a licence in May 2014 by the Victorian
Essential Services Commission to sell electricity to the national electricity market. In February 2014, an Alcoa spokesperson said that it was seeking sale options for the power station, which might be closed if a sale was not possible. In May 2015, Alcoa announced that it was unable to find a buyer for the plant, and would close it and the associated coal mine in August 2015. Closure occurred as planned on 31 August 2015. ==Criticism==