Understanding Rehabilitation Bonds

Resources Victoria (RV) sets and manages rehabilitation bonds for quarrying and exploration sites in Victoria.  A rehabilitation bond makes sure land is properly rehabilitated – even if an operator does not complete the work.

Understanding rehabilitation bonds
A rehabilitation bond is a financial guarantee provided before work starts. The rehabilitation bond is usually set at 100% of the estimated rehabilitation cost. If rehabilitation is not satisfactory (at the Minister’s discretion), RV can use the bond to pay for rehabilitation work.

Bonds can be lodged as:

• an unconditional bank guarantee, or
• cash (for amounts up to $100,000).

The bond must remain in place until the site has been rehabilitated to the required safe, stable and sustainable standard.

Baxters – Tree Planting

Rehabilitation requirements
Under the Mineral Resources (Sustainable Development) Act 1990, the operator must:

• rehabilitate land in line with your approved plan, licence conditions or code of practice carry out rehabilitation during the life of your project (progressive rehabilitation)
• tell us when key stages or operations change, that may impact the rehabilitation liability.

Rehabilitation plans must ensure that land is returned to a safe, stable and sustainable standard. This includes managing risks to public safety, the environment and surrounding land.

Conundrum – Stawell Quarry 2009-2011

Establishing and managing rehabilitation bonds
RV conducts regular reviews of rehabilitation bonds, including:

• when a new work plan or work plan variation is approved
• before a licence or work authority is transferred or renewed
• at any time, if the current bond is not sufficient.

Bond reviews consider current rehabilitation liability and future rehabilitation costs. Reviews are prioritised based on site risk.

When a bond is set, operators usually need to provide it within 90 days.

How bond amounts are calculated
Bond amounts are based on the full cost for the State to complete rehabilitation works in line with the approved rehabilitation plan.

This includes:

• earthworks, revegetation and infrastructure
• removal
• project management
• contingency
• environmental monitoring

It also includes the cost of hiring external contractors. RV will consult with operators before setting the bond.

Self assessment of rehabilitation liability
Operators may be asked to complete a self-assessment using:

• a rehabilitation bond calculator, or
• standard rates for small sites.

Bond calculator

• Work authority holders (e.g. quarries):
  º Simple sites (less than 15 m depth, no slimes dams): use the Simplified Rehabilitation Bond Calculator
  º Large or complex sites: use the Quarries Bond Calculator

The following calculators are available on the RV website:

• Simplified Rehabilitation Bond Calculator
• Quarries Bond Calculator

Reducing bond (quarries)
Following an independent review in 2025, some quarry operators may be eligible for a reduced final bond.

• actively rehabilitate site
• prepare for future rehabilitation.

The Guideline for Quarry Rehabilitation Performance Incentive Scheme is available on the Resources Victoria website

Letter-based commitments
A letter-based commitment is a written promise from a work authority holder. It explains what work they will do, or how much material they will extract, over a set
time (up to 5 years). It can apply to a smaller area than what is allowed under the approved work plan.

These commitments can help lower rehabilitation costs and reduce the bond amount. This can be done by:

• working in stages
• reducing the area disturbed
• completing rehabilitation as work progresses.

The commitment must follow the approved work plan.

Operator requirements

• Clearly list all the work completed during the set time, including any rehabilitation.
• Make sure the commitment matches the approved work plan.
• If work changes, contact RV to update commitment and request a bond review.

We will use the letter to assess rehabilitation costs based only on the work planned to be completed during that time.

Voluntary annual review
A yearly review of the bond can be requested by contacting the Rehabilitation Liability Assessments and Bonds Officer via [email protected] This allows the operator’s bond to decrease as rehabilitation progresses.

Baxters – Rehabilitation of previous quarry

Returning a bond
A rehabilitation bond is returned when we RV is satisfied that:

• the land has been rehabilitated as required
• the site is safe, stable and non polluting
• vegetation is likely to be self sustaining
• consultation requirements have been met.

Operators may need to demonstrate successful rehabilitation over several seasons. If obligations are not met:

• RV may use the bond to complete the work operators may need to pay additional costs if the bond is not enough
• operators may have enforcement action taken and be prosecuted.

Financial hardship provisions for mineral licences
Support is available if operators cannot meet increased bond requirements. Eligible licence holders may access:

• staged bond payments
• a plan to reduce liability
• regular monitoring.