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Rehabilitation Bonds

By on July 2, 2026

The CMPA was formed due to issues impacting the extractive industry in 2000, including the major issue of ever-increasing rehabilitation bonds. 

A number of significant reports have been submitted to various relevant Ministers over the years by CMPA – the most recent being the Review of Rehabilitation Bond Framework for Quarries in Victoria 2022, which can be viewed on the CMPA website.

After consistent and persistent advocacy over many years from CMPA regarding   rehabilitation bonds, the Minister for Energy and Resources, The Hon Lily D’Ambrosio MP established an external review panel to examine rehabilitation bonds for quarry operators in Victoria. 

The panel reviewed the current settings for rehabilitation bonds and provided recommendations for reform.  Panel Members were selected for their leadership and expertise in requisite fields (comprising perspectives from industry, risk/actuarial expertise, economics/land use expertise, and environmental sustainability expertise).   

Sarah Andrew, Resource and Land General Manager, Conundrum Holdings was selected by the Minister for her industry perspective as a panel member with exceptional work delivered.  

Dr Elizabeth Gibson presented to the panel in person and in writing. The panel report sent to the Minister on 30 November 2025 was released 15 May 2026. 

The Minister stated the following: 

“From May 2026, Resources Victoria will implement the following actions:  

  • publish and apply a simplified quarry rehabilitation bond calculator, incorporating reduced rates that rely on median case cost assumptions  
  • implement the Quarry Rehabilitation Performance Incentive Scheme, enabling eligible quarry operators to receive bond reductions of up to 20% where they can demonstrate proactive rehabilitation risk management  
  • increase acceptance of cash bonds for quarries, raising the threshold from $50,000 to $100,000  
  • publish updated guidance and supporting materials to clearly explain the revised policy settings and how they will be applied.  

Consistent with the government’s commitment, Resources Victoria has not processed quarry bond reassessments while the Panel process ran its course and while these policy changes were being finalised. However, I wish to advise you that bond reviews will recommence from May 2026 and will be undertaken in accordance with the revised policy framework. Resources Victoria will advise your members on a site-by-site basis. 

In parallel, Resources Victoria will undertake further work to explore a risk-based pooled funding model for quarry rehabilitation. This work will involve detailed analysis and ongoing engagement with industry and other stakeholders throughout 2026.” 

This all sounds very promising but the detail and implementation is currently being developed by Resources Victoria and hopefully the intent of the Minister will not be lost in translation. 

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