Latrobe Valley coal mines rehabilitation
As Victoria moves away from coal-fired energy, work is underway for the rehabilitation of the Latrobe Valley brown coal mines.
The 3 mines – Hazelwood, Yallourn and Loy Yang – are each at different stages of closure and rehabilitation:
- Hazelwood closed in 2017. Rehabilitation is well advanced, and planning continues for how the land will be used in the long term.
- Yallourn is scheduled to close in 2028. The operator is now developing detailed closure and rehabilitation plans with input from regulators and the community.
- Loy Yang is expected to operate until 2045. Closure planning is still in the early stages.
Each mine’s operator is responsible for safely rehabilitating their site to make the land safe, stable and sustainable for the future. This in line with regulatory requirements.
The Victorian Government is supporting this work through policies, strategies and regulatory reforms.
Legislative initiatives
Declared mine legislation
Victoria’s declared mine legislation came into effect on 1 July 2020. It helps manage mines that pose significant risks to public safety, the environment or infrastructure. This includes risks from ground movement, groundwater, flooding or water quality issues.
The legislation currently only applies to the Hazelwood, Loy Yang and Yallourn brown coal mines. This is due to their size, complexity and potential impact on the surrounding area and communities.
The Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019 have been updated to include regulations for declared mines.
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 strategy was last updated in 2023. It will be reviewed in 2026.
Latrobe Valley Regional Rehabilitation Strategy (LVRRS) factsheets
Find out more about the LVRRS in these factsheets.
LVRRS At a Glance
LVRRS Manufactured Water
Regional Geotechnical Study
Regional Water Study
Land Use Planning
Supporting technical reports
Various technical reports were prepared to inform the LVRRS.
Mine Land Rehabilitation Authority (MLRA)
Based in Morwell, the MLRA is an independent government agency seeking positive mine rehabilitation outcomes for the region. It works with community, industry and government to:
- support the safe rehabilitation of declared mine sites
- promote positive and sustainable mine rehabilitation outcomes
- provide assurance that the LVRRS is being put into action
- educate and inform the community about the rehabilitation of declared mines.
Rehabilitation bond policy
In Victoria, anyone holding a mining, exploration or extractive licence must lodge a rehabilitation bond with Resources Victoria before starting work.
The bond must cover 100% of the estimated cost to fully rehabilitate the site.
Current bonds held for the declared mines under the Mineral Resources (Sustainable Development) Act 1990 are:
- Hazelwood: $289 million
- Loy Yang: $154 million
- Yallourn: $148 million
Trailing liabilities for declared mines
The Victorian Government is introducing a trailing liability scheme to make sure that mine rehabilitation happens, even if a current mine owner fails to do the work. This means:
- if a current owner does not or cannot complete the rehabilitation, the government can ask a previous owner or someone else connected to the mine to finish the work (if they owned the mine after 5 May 2022)
- Victoria’s laws will match national standards for managing long-term mine risks.
In February 2023, Resources Victoria asked for feedback to help design the trailing liability scheme. Download the consultation paper and public (redacted) submissions below.
Page last updated: 08 Oct 2025