Safe Climate

Mine rehabilitation

Everything you need to know about Mine Rehabilitation in Victoria. With three giant open-cut coal mines to clean up, learn how you can step up and take action.

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What is mine rehabilitation and mine remediation?

Learn about the difference in these terms, and why it matters.

Mine rehabilitation is the process of repairing the damage done by mining activity and returning the land to something closer to its former state. This can involve simply making the site safe and stable, but global best practice strives to create a landscape that can support future uses of the land – such as returning it to an agricultural landscape or identifying new beneficial uses. 

Mine remediation focuses on just neutralising the hazardous materials and contaminants to make the area safe for the environment and the public. Rehabilitation is a broader process, with the goal of restoring the land, while remediation is a part of rehabilitation and focuses on the necessary cleanup to stop further environmental degradation.

Victoria’s three brown coal mines – Hazelwood, Yallourn and Loy Yang – all sit on Gunaikurnai Country in the Latrobe Valley (see our map below). In their position statement, ‘Healing Wurruk after Coal, the Gunaikurnai Land and Waters Aboriginal Corporation (GLaWAC) explains their approach to the terms “remediation” and “rehabilitation:”

“Our Elders have told us that it’s not right to use the word “rehabilitation” when talking about healing Country after coal mining. They told us that rehabilitation would mean restoring Country to its original state before coal mining, before European settlement – but we know that there will always be scars on this Country that tell the story of our land’s dispossession.  Instead, we choose to use the word “remediation” to describe the process of healing Country impacted by coal mining.Source/ Healing Wurruk Position Paper

Image Caption: Lower Latrobe River


The language on this webpage is updated to reflect this preference, but it should be noted that while remediation is likely what the land will get, the total and complete rehabilitation of the land is a long term goal that shouldn’t be overlooked or forgotten.

At a practical level, coal mine remediation typically involves flattening the steep sides of the mine, covering exposed coal with soil and clay and revegetating the area with trees and grasses.

You can read more about what is currently being proposed for Victoria’s coal mines below.

Download our Fair Future for Latrobe Valley booklet here

Download (PDF)

Map of Latrobe Valley and its Coal Mines

You can expand this map to full screen using the button in the top right corner of the map. The red zones highlighted on the map are active mine voids that have already been dug up. It should be noted that the mine license areas, which is where the mine operators are legally permitted to dig up more coal, are much wider than the existing mine voids reflected on this map. 

Why is remediating our coal mines important?

In 2014 the disused coal mine attached to Hazelwood Power Station near Morwell caught fire. The fire burned for 45 days, blanketing the surrounding area in toxic smoke and forcing evacuation of vulnerable residents.

Watch: our short documentary about the mine fire and its aftermath.

Watch Ashes to Aftermath (youtube)

The evidence heard at the inquiries into the Hazelwood mine fire showed that the failure to progressively rehabilitate the mine contributed to the fire’s severity and that mine rehabilitation is the best way of preventing coal mines from catching fire. 

The inquiries also led to the creation of several government bodies tasked with ensuring appropriate mine rehabilitation and a fair transition for the Latrobe Valley community.

Since the 10-year anniversary of the mine fire in 2024, we’ve seen the systematic and complete defunding of these agencies. The Latrobe Valley Authority – set up in 2016 to support Latrobe Valley’s workers, their families and communities through transition – has been absorbed into Regional Development Victoria. And the Mine Land Rehabilitation Authority, charged with overseeing the rehabilitation of the Latrobe Valley’s mine land, has been merged into Resources Victoria.

In both cases, dedicated, locally focused bodies have been folded into much larger departments with far broader remits, stripping out the sustained local focus and specialist technical expertise these agencies were created to provide – right when the Latrobe Valley needs them most. 

This means it’s more important than ever that we stand up for a fair transition for the Latrobe Valley, and a safe, stable and sustainable future for our whole state. Without remediation, and with the compounding pressures of the climate crisis, unremediated mines increase the risk of fire, flooding and pollution being blown onto nearby communities.

What is happening in mine remediation in the Latrobe Valley?

After decades of mining coal to power Victoria, the Latrobe Valley now has three massive open-cut coal mines –  Hazelwood, Yallourn and Loy Yang – which are all either already closed or are scheduled to close in the coming years.

Hazelwood Mine is first in line for remediation.

Hazelwood mine pit from above

Image caption: Hazelwood mine pit from above

It closed in 2017, leaving a massive, unstable mine pit more than 100 metres deep and roughly the size of Melbourne’s CBD, sitting right next to the town of Morwell and the Princes Freeway. The mine is owned by French company ENGIE, which has a legal obligation to clean up the site. 

What happens at Hazelwood will help set the standard for how the other Latrobe Valley mines are remediated – including the level of stability we get, the protection granted to the waterways we all depend on, and the community oversight and accountability we can expect. 

Right now, Hazelwood is going through a major government assessment process called an Environmental Effects Statement (EES).

The EES is designed to assess:

  • Environmental impacts
  • Water use
  • Public safety
  • Cultural heritage
  • Long-term land stability
  • Community and health impacts

Importantly, the EES process is also open to public consultation – meaning community members can review the plans and make submissions before decisions are finalised. Community pressure has already shaped this process. After 145 public submissions on the scoping requirements, the government strengthened the assessment to require ENGIE to consider the feasibility of alternatives to the pit lake – including alternative water sources such as recycled or desalinated water.

We expect the EES to be open for public comment in the second half of 2026. This is our chance to help shape the future here in Latrobe Valley. Learn more>>

Who pays for the clean-up?

Mine operators pay rehabilitation bonds (like a rental bond) that are meant to cover the cost of clean-up if a company fails to meet its obligations. Before the mine fire, these bonds were as little as $15 million per mine – a small fraction of the real cost. Following the mine-fire inquiries they were lifted substantially. As of 2026, the bonds held for the three Latrobe Valley mines are $289 million for Hazelwood, $189.9 million for Loy Yang and $182.5 million for Yallourn – around $661 million in total.

But that’s still well short of what the job is likely to cost. Engie’s own estimate to rehabilitate Hazelwood is around $743 million – meaning the $289 million bond covers less than half the expected cost. 

In February 2026 the Victorian Parliament passed the Mineral Resources (Sustainable Development) (Financial Assurance) Amendment Act 2026, creating a ‘trailing liabilities’ scheme for the three declared mines. It is designed to ensure the companies that profit from these mines cover the full cost of clean-up – and if a current operator cannot or will not finish the job, the government can pursue related parties, such as a previous licensee, a related company, or anyone who profited from or had control over the site.

Find out more from our recent report, ‘Preventing the Preventable’.

Read the report

 

What do Latrobe Valley residents think?

 

9 in 10

people in the Latrobe Valley support mine rehabilitation.

57%

of Morwell voters are more likely to vote for candidates who support speeding up rehabilitation works.

Two thirds

of voters support an increase in rehabilitation bonds and/or higher coal royalties to encourage rehabilitation works.

*Polling by Essential Media Research, October 2014.

Mine remediation and EES tools and resources

Hazelwood EES Campaign Tools

Related and Further Reading

Coming soon

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More about Mine Rehabilitation

News, blogs and reports covering Mine Rehabilitation and Remediation in Victoria