5 Progress update – Coal mine operators

5 Progress update –

Coal mine operators

5.1 Mine Rehabilitation Inquiry report

During the 2015–16 Inquiry, the Board of Inquiry was unable to make a definitive assessment on the viable rehabilitation option for each of the three Latrobe Valley mines due to many areas of uncertainty that were not addressed by relevant agencies and the mine operators. These issues included mine stability, sourcing water, water quality, and fire risk. In the Mine Rehabilitation Inquiry report, the Board of Inquiry made 17 recommendations to be implemented by the state. The two Victorian Government actions that remain in progress are reported on in Chapter 4. The Board of Inquiry made two recommendations, and one affirmation, for implementation by the Latrobe Valley mine operators. The following is a summary of progress on the recommendation that remained in progress in the 2020 IGEM Hazelwood report. Refer to Appendix A for a full list of recommendations and affirmations, including those previously reported as complete.

Table 8: Status of Mine Rehabilitation Inquiry report coal mine operator recommendation reported as ongoing (in progress) in 2020

NO. RECOMMENDATION/AFFIRMATION STATUS

Rec 19 Increase the rate of progressive rehabilitation by achieving milestones within the mines' progressive rehabilitation plans, as set by the Mining Regulator under Recommendation 4. In progress

5.2 Mine Rehabilitation Inquiry report:

Recommendation 19

Increase the rate of progressive rehabilitation by achieving milestones within the mines' progressive rehabilitation plans, as set by the Mining Regulator under Recommendation 4.

This recommendation is linked to Action 158 in Chapter 4. The Mine Rehabilitation Inquiry report recommended that the three Latrobe Valley coal mine operators increase the rate of progressive rehabilitation by achieving milestones within their progressive rehabilitation plans. The Victorian Government Implementation Plan sets out that progressive rehabilitation milestones will be built into work plan variations for the Latrobe Valley coal mines and approved by DJPR as the regulator. ENGIE ceased mining at Hazelwood in March 2017 and moved to an immediate post-station closure and closure planning period. Final rehabilitation works are expected to take a further 10 to 15 years. IGEM notes that progressive rehabilitation milestones are no longer relevant to ENGIE.

EnergyAustralia and AGL Loy Yang provided IGEM with a progress update on their respective progressive rehabilitation activities across 2020–21, as outlined below.

EnergyAustralia

DJPR approved EnergyAustralia Yallourn’s work plan variation in March 2019 – including progressive rehabilitation milestones.

The 2019 IGEM Hazelwood report noted that EnergyAustralia's key progressive rehabilitation targets under its Yallourn Mine Risk Assessment and Management Plan (2019) are:  mine rehabilitation – rehabilitate an area of the mine greater than or equal to the area disturbed during the year  cover exposed coal – progressively reducing the area of exposed coal to 312 hectares (ha) by

December 2019, 300 ha by December 2020, and 290 ha by December 2021. EnergyAustralia advised that progressive rehabilitation activities continue to be implemented in line with its target commitments. During the 2020 calendar year EnergyAustralia reported completing approximately 38.7 ha of rehabilitation against 31.8 ha of mine disturbance, and the area of exposed coal reduced to 296 ha (300 ha target). During the 2021 calendar year (as of June 2021) EnergyAustralia reported completing approximately 35.3 ha of rehabilitation, and the area of exposed coal reduced to 289 ha (290 ha target).

AGL Loy Yang

AGL Loy Yang submitted its new work plan application to DJPR in June 2020. DJPR requires the work plan to include progressive rehabilitation milestones to address Recommendation 19 of the Mine Rehabilitation Inquiry Report (refer to Action 158). Until the work plan is approved, AGL Loy Yang continues to conduct an annual program of rehabilitation with an aim of keeping up with the rate of disturbance from the mine expansion. The 2019 IGEM Hazelwood report outlined that AGL Loy Yang aimed to progressively rehabilitate an average of 20 ha per year until 2025. AGL Loy Yang's Progressive Rehabilitation Report for the 2020–21 financial year outlines that AGL Loy Yang undertook nine rehabilitation projects with a combined outcome of 27.14 ha of rehabilitation. AGL Loy Yang is working with DJPR's Energy Resources Regulation to have its work plan approved. AGL advised that the work plan application contains a progressive rehabilitation plan and rehabilitation targets and further identifies ways to increase and maintain its rehabilitation effort. AGL Loy Yang has committed to provide its progressive rehabilitation plan and rehabilitation targets to IGEM when the work plan application is approved. IGEM will continue to monitor this recommendation – in conjunction with Action 158 – to assess whether the intent of the recommendation is met.

Finding

IGEM notes progress on this recommendation.

Yallourn mine: Coal Coverage and progressive rehabilitation in East Field- June 2021 (Source: EnergyAustralia)

Yallourn mine: Coal Coverage and progressive rehabilitation in East Field extension - June 2021 (Source: EnergyAustralia)