Latrobe Valley coal mines rehabilitation
History
Coal mining in the Latrobe Valley commenced near Yallourn over a century ago. The State Electricity Commission (SEC) was formed to develop open-cut mining in the Latrobe Valley and build power generation facilities. Sir John Monash was appointed Chairman of the SEC in 1921, with power from Yallourn first reaching Melbourne in 1924.
The Latrobe Valley has 3 brown coal mines: Hazelwood, Yallourn and Loy Yang.
Mine closure and rehabilitation
As Victoria transitions to renewable energy, work is underway to plan the rehabilitation and closure of Latrobe Valley’s 3 brown coal mines.
Mines within the Latrobe Valley
The 3 mines are at different stages of operational closure and rehabilitation:
- Hazelwood was closed in 2017. The mine licensee, ENGIE, has made significant progress on early rehabilitation works. Planning for the land’s long-term use continues. ENGIE submitted a declared mine rehabilitation plan (DMRP) in October 2025. The Environment Effects Statement process will help inform the assessment of the plan.
- Yallourn is expected to close in 2028. The mine’s licensee, EnergyAustralia, has submitted a DMRP in September 2025. Resources Victoria has asked for more information to assess the plan. The mine licensee has progressively rehabilitated the site over many years to prepare for mine closure.
- Loy Yang is the largest of the 3 mines. It supplies coal to Loy Yang A and Loy Yang B power stations. The mine licensee, AGL, plans to rehabilitate the mine after the planned closure of Loy Yang A power station in 2035. Rehabilitation planning is underway. AGL must submit a DMRP by October 2027.
How rehabilitation is governed
Hazelwood, Yallourn and Loy Yang are currently Victoria’s only declared mines.
Under Victorian legislation, a declared mine is a mine that has geotechnical, hydrogeological, water quality or hydrological factors that may be deemed to pose significant risk of harm to the community, environment and infrastructure.
The Victorian Government has introduced a stronger regulatory framework for the Latrobe Valley declared mines. The framework requires more detailed mine rehabilitation plans, more transparent decision-making and stronger community engagement.
The Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019 include specific regulations for declared mines.
Declared mine rehabilitation plan (DMRP) guidelines
New Ministerial guidelines for preparing DMRPs were approved in 2025 to support the safe rehabilitation and closure of declared mines.
These guidelines will help Latrobe Valley coal mine licensees understand their legal responsibilities, including to:
- assess and manage risks
- design effective rehabilitation plans
- set clear closure criteria
- prepare post-closure plans.
Trailing liabilities for declared mines
On 5 February 2026, the Parliament of Victoria passed the Mineral Resources (Sustainable Development) Amendment Act 2026. The amendment introduces a trailing liabilities scheme to the Mineral Resources (Sustainable Development) Act 1990.
The scheme makes sure that companies that profit from complex mine operations cover the full costs of site rehabilitation.
If a current licensee does not or cannot complete the rehabilitation, the government can ask any of the following relevant parties to finish the work:
- previous licensee
- a related body corporate
- someone who has financially benefitted from the site
- someone who had control over, or could influence, how the licensee met its rehabilitation obligations
- someone who has acted jointly with the licensee in relation to work done under the licence.
The trailing liabilities provisions apply to relevant parties that held a declared mine licence or were connected to the mine licensee on or after 6 May 2022.
In February 2023, Resources Victoria asked for feedback to help design the trailing liability scheme. Download the consultation paper and public (redacted) submissions below.
Latrobe Valley Regional Rehabilitation Strategy (LVRRS)
The LVRRS provides policy and guidance to make sure that the Hazelwood, Yallourn and Loy Yang coal mines are safely and sustainably transformed for the long term.
The LVRRS was released in 2020 and amended in 2023.
Supporting technical reports
Various technical reports were prepared to inform the LVRRS.
Rehabilitation bond policy
The 2025 rehabilitation bond policy explains how the government assesses rehabilitation costs and sets bonds for the Latrobe Valley coal mines.
Mine licensees must cover the full cost of rehabilitating their sites. The Minister for Energy and Resources can require licensees to provide bonds to ensure they meet their rehabilitation obligations.
Current rehabilitation bonds
Current rehabilitation bonds for each of the Latrobe Valley coal mines:
Hazelwood
$289 million
Loy Yang
$189.9 million
Yallourn
$182.542 million
Page last updated: 09 Sep 2026