Latrobe Valley coal mines rehabilitation
As Victoria moves away from coal-fired energy, the focus is shifting towards the closure and 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 2035. 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 is in line with regulatory requirements.
The Victorian Government is supporting this work through its policies, strategies and regulatory reforms.
Regulatory framework
The Victorian government has introduced a stronger regulatory framework to oversee the Latrobe Valley coal mines, requiring more detailed mine rehabilitation plans, more transparent decision-making and greater community engagement.
The Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019 were updated to include regulations for declared mines.
The Mineral Resources (Sustainable Development) (Financial Assurance) Amendment Act 2026 creates a new trailing liabilities scheme for declared mines under the Mineral Resources (Sustainable Development) Act 1990.
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) (Financial Assurance) 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 together with the licensee in relation to work done under the licence.
The trailing liabilities provisions apply to relevant parties that held the mine licence or were connected to the mine licensee on or after 6 May 2022.
The trailing liability scheme applies only to declared mines. Currently, the only declared mines are the Hazelwood, Yallourn and Loy Yang coal mines in the Latrobe Valley.
Background
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 strategy was last amended in 2023. The strategy is reviewed every three years.
Supporting technical reports
Various technical reports were prepared to inform the LVRRS.
Rehabilitation bond policy
Resources Victoria has reviewed the 2017 Rehabilitation Bond Policy for the Latrobe Valley coal mines at Hazelwood, Yallourn and Loy Yang.
The updated policy, released in 2025, sets out how rehabilitation liabilities can be assessed and how rehabilitation bonds can be determined under the Mineral Resources (Sustainable Development) Act 1990.
Communities and government expect that the full costs of mine rehabilitation are borne by the mine licensee. The Act allows the Minister for Resources to require a licensee to provide rehabilitation bonds in favour of the State, to secure the performance of 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: 19 Feb 2026