Community and land use

Rehabilitation

In Victoria, mining and quarrying play a vital role. They supply important materials we rely on like gravel, sand, gold and critical minerals. But every mine and quarry eventually comes to the end of its life. When this happens, the site must be rehabilitated, restoring the land to a safe, stable and sustainable state.

The Victorian Government ensures operators follow through on their rehabilitation plans and programs. This is done via planning, financial assurance and regulatory oversight. This approach protects both public interests and the environment.

Regulatory framework

In Victoria, the Mineral Resources (Sustainable Development) Act 1990 is the key legislation, regulating mines and quarries, including their rehabilitation.

The Earth Resources Regulator (ERR), a division of Resources Victoria, ensures compliance with this legislation. The ERR makes sure rehabilitation obligations are met through mechanisms such as work plans, rehabilitation bonds and enforcement actions.

Rehabilitation planning

Mine and quarry operators must submit a work plan before starting operations. This plan outlines how they will manage the site, including the proposed end land use, rehabilitation goals and methods to achieve them. The ERR must approve these plans, and operators must update them when operation change are made.

Progressive rehabilitation

The Victorian Government encourages progressive rehabilitation, where possible. This means restoring parts of the site during operations instead of waiting until closure. This approach reduces the disturbed footprint and lessens the rehabilitation load at the end of the mine's life.

Financial assurance: Rehabilitation bonds

Operators must lodge a rehabilitation bond with the government before work begins. This bond is a financial guarantee that funds will be available for rehabilitation, even if the operator defaults.

The bond amount is based on the full cost of rehabilitation, considering the site’s size, the nature of the operations and the proposed end land use.

The ERR provides guidelines and tools, such as the rehabilitation bond calculator, to help operators estimate their liabilities. Bonds are reviewed and adjusted regularly to reflect changes in site conditions or rehabilitation costs.

Compliance and enforcement

The ERR uses a range of strategies to monitor compliance and enforce rehabilitation obligations:

  • Inspections: Site inspections check compliance with work plans and rehabilitation requirements.
  • Reporting: Operators of declared mines must submit 6-monthly reports on rehabilitation progress and any issues faced.
  • Enforcement actions: If non-compliance is found, the ERR can issue remedial notices for corrective actions. In cases of serious or repeated non-compliance, the regulator may pursue prosecution.

Returning the bond

Rehabilitation bonds are returned only when the ERR is satisfied that the rehabilitation meets legal and environmental standards. If the work is on private land, the landholder must be consulted about the completed works. Local councils are also consulted before the bond is returned.

Page last updated: 01 Jul 2025