Latrobe Valley coal mine rehabilitation bonds

In response to the recommendations in the final report of the reopened Hazelwood Mine Fire Inquiry, the government increased rehabilitation bonds to better provision for Latrobe Valley coal mine rehabilitation into the future.

Rehabilitation bonds have been reviewed and increased in three-stages since the Inquiry. To inform the third stage review, the Victorian Government released and applied the Rehabilitation Bond Policy for Latrobe Valley Coal Mines (Bond Policy).

Review and update of the Bond Policy

Circumstances have changed since the Bond Policy and associated Rehabilitation Liability Assessment Framework were released in 2017 and 2016 respectively.

For example, the following have occurred:

• Release and subsequent amendment of the Latrobe Valley Regional Rehabilitation Strategy.
• Introduction of a strengthened regulatory framework for mine rehabilitation, including the declared mine land rehabilitation regime.
• Planned earlier closures of the Yallourn and Loy Yang A power stations.
• Commencement of an Environment Effects Statement for the proposed Hazelwood Mine Rehabilitation Project
• Inflationary and other market and geopolitical factors placing upward pressure on the costs of implementing rehabilitation works, for example, the COVID-19 pandemic and disruptions to supply chains.

These changes require the Minister to reconsider the Bond Policy to ensure it appropriately considers the current circumstances in which mine rehabilitation will be undertaken. Resources Victoria will consult with relevant stakeholders to develop an updated Bond Policy.

While the review is underway, the 2017 Bond Policy and 2016 Framework have been withdrawn from our website and will not be applied.

In the meantime, the Minister plans to review the sufficiency of rehabilitation bonds already entered into by the Latrobe Valley coal mine licensees.

Page last updated: 25 Sep 2024