Quarry Rehabilitation Bonds

Dr Elizabeth Gibson received a briefing from Resources Victoria on the implementation of the Quarry Rehabilitation Bonds Review Panel Final Report and Recommendations on19 May 2026.  

Panel Report Recommendations 

Recommendation 1
Replace the existing rehabilitation bond system with a risk-based pooled funding scheme.  

Recommendation 2
Simplify the Bond Calculator and reflect risk mitigators.  

Recommendation 3
Set bond amounts to reflect the prospective disturbance over shorter time periods.  

Recommendation 4
Expand the variety of approved bond forms.  

A comparison is made below between the Minister for Energy and Resources letter 14 May 2026 and the briefing provided by Resources Victoria. 

A comparison is made below between the Minister for Energy and Resources letter 14 May 2026 and the briefing provided by Resources Victoria. 

1.  Minister 

“Publish and apply a simplified quarry rehabilitation bond calculator, incorporating reduced rates that rely on median case cost assumptions.” 

Resources Victoria 

These are approximately ~30% lower across the board and will be available shortly. 

• A new a simplified bond calculator for lower-risk quarries (below 15m depth and with no slimes dams).  This will be published for use in June 2026. 
• A new quarry rehabilitation bond calculator for larger sites with reduced rates of 30% based on a p50 confidence level. 
• The Quarry Rehabilitation Performance Incentive Scheme (QRPIS).   
• Three conditions must be satisfied for eligibility: 
• Operator must not be a small quarry operating under the Code of Practice for Small Quarries 
• Operators must have an up-to-date rehabilitation plan (since 1 July 2021)  
• Operator must accept the assessed rehabilitation bond liability. 

2.  Minister 

“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.”  

Resources Victoria 

Resources Victoria will promote the current Letter based commitment system which they consider to be fit for purpose. Guidelines will be published in June 2026.  Operators are encouraged to utilise this system. The following reduction criteria need to be met for a further 20% discount:

• Subject has material onsite or available to use for rehabilitation (5%) 
• Subject has been progressively rehabilitating the site (5%) 
• Subject has been recently active and producing (last 5 years) (5%) 
• Subject has a minimum of 5 years’ worth of reserves left to extract (5%). 

 3.  Minister 

“Increase acceptance of cash bonds for quarries, raising the threshold from $50,000 to $100,000.” 

Resources Victoria 

RV has increased the limit of cash bonds for operators from $50,000 to $100,000. This is now in place. 

4.  Minister 

“Publish updated guidance and supporting materials to clearly explain the revised policy.” 

Resources Victoria 

Guideline for Quarry Rehabilitation Performance Incentive Scheme has been released for comment (attached). 

5.           Minister 

“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.” 

Resources Victoria 

• Resources Victoria is undertaking a detailed analysis of the benefits and risks in moving to any pooled funding scheme and will engage with industry throughout this process.  
• A pooled fund would represent significant reform which would require legislative change.   

Additional information from RV 

• Resources Victoria can apply the revised bond calculator rate settings to all operators who have had their rehabilitation bond re-assessed within the last 2 years.  For bond determinations older than this (or where there have been other changes at RV’s discretion), a further rehabilitation liability assessment must be undertaken (using the new calculator).   
• For recent re-assessments (<2 years old) Resources Victoria operators can contact RV to demonstrate that they meet QRPIS eligibility criteria and directly apply any reduction that they may be eligible for accordingly.   

Resources Victoria will hold an industry webinar on the rehabilitation bond recommendations in mid-June 2026 (date to be determined). 

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