The lignite mines in the Latrobe Valley of Victoria/Australia have been using continuously operating mining systems for more than 50 years. The relatively small bucket chain dredgers of the early years have been progressively displaced by bucket wheel dredgers with increasing size, increasing capacity and increasing service weight. The large machines for the new open pit Loy Yang have a bucket wheel outreach of 46m, an effective capacity of 3350 bm' coal/h respective 2500 bm' overburden/h and a serv- ice weight of approx. 4500 t. The time between signing of con- tract and starting of operation for these machines is at least four years. The high service weight, the resulting high capital invest- ment and the long period for design, design review, manufac- turing, erection and commissioning of these machines directed the SECV to investigate a possible application of compact dredgers for the Latrobe Valley.