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 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 in line with regulatory requirements.
The Victorian Government is supporting this work through policies, strategies and regulatory reforms.
Regulatory framework
The Victorian government has introduced a stronger regulatory framework to oversee the Latrobe Valley mines, requiring more detailed mine rehabilitation plans, more transparent decision-making and greater community engagement.
The Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019 have been updated to include 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.
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.
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 facilitating 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
Resources Victoria has reviewed the 2017 Rehabilitation Bond Policy for the Latrobe Valley Coal Mines at Hazelwood, Yallourn and Loy Yang.
The updated policy sets out how rehabilitation liabilities can be assessed and rehabilitation bonds can be determined under the Mineral Resources (Sustainable Development) Act 1990 (the Act).
Communities and government expect that the full costs of mine rehabilitation are borne by the mine authority holder. The Act allows the Minister for Resources to require an authority holder to provide rehabilitation bonds in favour of the State, to secure the performance of rehabilitation obligations.
Current rehabilitation bonds
Current rehabilitation bonds held for each of the Latrobe Valley coal mines are outlined below:
Hazelwood
$289 million
Loy Yang
$189.9 million
Yallourn
$182.542 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: 09 Oct 2025