All revenue raised from EnergyAustralia’s water entitlement for the Yallourn coal mine will be invested in the Regional Jobs and Infrastructure Fund.
Treasurer of Victoria Colin Brooks confirmed the commitment today, saying the money will be directed to local jobs, community projects and infrastructure across Gippsland.
The decision follows the government’s earlier move to direct all revenue from AGL’s water entitlement into the same fund, extending an approach designed to keep the benefits of mine rehabilitation within the Latrobe Valley.
EnergyAustralia will pay $230 per megalitre of water accessed each year, with the rate increasing in line with inflation.
Payments will begin once water is used for mine rehabilitation, which will follow the planned closure of Yallourn Power Station in 2028.
The water entitlement will allow EnergyAustralia to rehabilitate the Yallourn coal mine and leave the site safe and stable for the environment and future generations.
Strict conditions will apply to protect local farmers, existing water users and the environment.
Water access will be heavily restricted in dry years and limited to wetter periods to protect river flows.
The Victorian government has also reduced the amount of water that can be taken from the Latrobe River once power generation ends.
The change is intended to protect water availability for local communities and farmers.
EnergyAustralia must also secure the necessary mine rehabilitation approvals before it can use any water for rehabilitation work.
Brooks said the arrangement ensures that the value of the water resource stays within the region where the mine operates.
“Every dollar raised from water access for mine rehabilitation will go straight back into the Latrobe Valley and Gippsland – supporting local jobs, infrastructure and communities,” said Brooks.
Minister for Water and Minister for Rural and Regional Development Michaela Settle said the approach balances the need to rehabilitate the mine with the protection of water supplies relied on by farmers and residents.
Member for Eastern Victoria Harriet Shing said the benefits of rehabilitation would be felt locally, supporting families and communities across Gippsland and specifically the Latrobe Valley.
The Regional Jobs and Infrastructure Fund backs projects that create employment and improve community facilities in regional Victoria.
By directing water entitlement revenue into the fund, the government says the Latrobe Valley will receive a lasting return as the region moves beyond coal-fired power generation.
The closure of Yallourn Power Station in 2028 marks a significant milestone for the Latrobe Valley, which has powered Victoria for generations.
Rehabilitating the large mine site is expected to be a long-term undertaking, and the state government states the conditions attached to the water entitlement will ensure it proceeds in a way that safeguards the environment and local water users.
