Rehabilitation bonds for mineral exploration, mines and quarries

Resources Victoria sets and manages rehabilitation bonds for mining, quarrying and exploration sites in Victoria.  A rehabilitation bond makes sure land is properly rehabilitated – even if an operator does not complete the work.

Understanding rehabilitation bonds

A rehabilitation bond is a financial guarantee you must provide before work starts.

The rehabilitation bond is usually set at 100% of the estimated rehabilitation cost.

If rehabilitation is not satisfactory (at the Minister’s discretion), we can use the bond to pay for rehabilitation work.

Bonds can be lodged as:

• an unconditional bank guarantee, or
• cash (for amounts up to $100,000).

The bond must remain in place until the site has been rehabilitated to the required safe, stable and sustainable standard.

Rehabilitation requirements

Under the Mineral Resources (Sustainable Development) Act 1990, you as the operator must:

• rehabilitate land in line with your approved plan, licence conditions or code of practice
• carry out rehabilitation during the life of your project (progressive rehabilitation)
• tell us when key stages or operations change, that may impact the rehabilitation liability.

Rehabilitation plans must ensure that land is returned to a safe, stable and sustainable standard. This includes managing risks to public safety, the environment and surrounding land.

Establishing and managing rehabilitation bonds

We conduct regular reviews of rehabilitation bonds, including:

• when a new work plan or work plan variation is approved
• before a licence or work authority is transferred or renewed
• at any time, if the current bond is not sufficient.

Bond reviews consider current rehabilitation liability and future rehabilitation costs. Reviews are prioritised based on site risk.

When a bond is set, you will usually need to provide it within 90 days.

How bond amounts are calculated

Bond amounts are based on the full cost for the State to complete rehabilitation works in line with the approved rehabilitation plan.

This includes:

• earthworks, revegetation and infrastructure removal
• project management
• contingency
• environmental monitoring.

It also includes the cost of hiring external contractors.

We will consult with you before setting the bond.

Self‑assessment of rehabilitation liability

You may be asked to complete a self-assessment using:

• a rehabilitation bond calculator, or
• standard rates for small sites.

Mining licence holders must include an annual rehabilitation liability estimate in reports.

We check these assessments. You may need to update your assessment if errors are found.

Calculators

• Work authority holders (e.g. quarries):
  • Simple sites (less than 15 m depth, no slimes dams): use the Simplified Rehabilitation Bond Calculator
  • Large or complex sites: use the Quarries Bond Calculator
• Exploration, retention or mining licences: use the Minerals Bond Calculator

Standard bond amounts (minerals)

• Exploration licences: $10,000 per licence (higher amounts may apply for large-scale works)
• Small mines
  • $2,000/ha for small farm gypsum pits less than 5 ha disturbed and less than 2 m in depth
  • $3,500/ha for small open cut mines less than 5 ha disturbed and less than 2 m in depth
  • $5,000/ha for small open cut mines less than 5 ha disturbed and less than 5 m in depth
  • $5,000 for one small underground shaft/adit
  • $3,000 for each additional shaft/adit

These rates are only for low-risk minerals sites with basic infrastructure. They do not apply if there is contaminated soil, tailings or native vegetation offset requirements.

Reducing your bond (quarries)

Following an independent review in 2025, some quarry operators may be eligible for a reduced final bond.

To qualify, you must:

• actively rehabilitate your site
• prepare for future rehabilitation.

Read the Quarry Rehabilitation Performance Incentive Scheme for more information.

Letter-based commitments

A letter-based commitment is a written promise from a work authority holder. It explains what work they will do, or how much material they will extract, over a set time (up to 5 years). It can apply to a smaller area than what is allowed under the approved work plan.

These commitments can help lower rehabilitation costs and reduce the bond amount.

This can be done by:

• working in stages
• reducing the area disturbed
• completing rehabilitation as work progresses.

The commitment must follow the approved work plan.

What you need to do

• Clearly list all the work you will complete during the set time, including any rehabilitation.
• Make sure your commitment matches your approved work plan.
• If your work changes, contact us to update your commitment and request a bond review.

We will use your letter to assess your rehabilitation costs based only on the work you plan to complete during that time.

Voluntary annual review

You can request a yearly review of your bond by contacting the Rehabilitation Liability Assessments and Bonds Officer via rlab@deeca.vic.gov.au.

This allows your bond to decrease as rehabilitation progresses.

Returning a bond

A rehabilitation bond is returned when we are satisfied that:

• the land has been rehabilitated as required
• the site is safe, stable and non‑polluting
• vegetation is likely to be self‑sustaining
• consultation requirements have been met.

You may need to demonstrate successful rehabilitation over several seasons.

If you do not meet your obligations:

• we may use the bond to complete the work
• you may need to pay additional costs if the bond is not enough
• you may have enforcement action taken against you and be prosecuted.

Financial hardship provisions for mineral licences

Support is available if you cannot meet increased bond requirements.

Eligible licence holders may access:

• staged bond payments
• a plan to reduce liability
• regular monitoring.

Declared mines

Special arrangements apply to declared mines in the Latrobe Valley.

Read the Rehabilitation Bond Policy for the Latrobe Valley Coal Mines for more information.

Downloads

Quarry rehabilitation bond changes webinar recording

Watch the recording of Resources Victoria’s webinar held on 16 June 2026 on changes to quarry rehabilitation bonds. The session outlines updates to the RV bond calculator, the Quarry Rehabilitation Performance Incentive Scheme (QRPIS), and guidance on rehabilitation plans and minor variations.

Page last updated: 22 Jun 2026