Until midnight on 15 December 2024, the Victorian Department of Energy, Environment, and Climate Action (DEECA) is seeking feedback on how river water is used for coal mine operations and rehabilitation.
In this guide – which you can download as a PDF – we’ve outlined EJA lawyers' concerns about companies applying for large amounts of water from the Latrobe River for the rehabilitation of the Loy Yang mine and the operation of the Loy Yang A and B power stations.
Three applications for bulk water entitlements are currently with the Victorian Minister for Water, Harriet Shing, awaiting her decision. Right now, the government is inviting submissions before she makes her choice.
These are just the first in a series of mine rehabilitations so it’s a key opportunity to set a strong precedent and push for these applications to be carefully reviewed to ensure the best environmental and social outcomes for the Latrobe Valley.
You can have your say until midnight on Sunday 15 December 2024.
Ready to make a submission?
Scroll down for a step-by-step guide
Scroll down to read the full submission guide or download a PDF version here.
WHY THIS MATTERS
It's time for the coal industry to clean up
Bulk water entitlements give corporations access to huge amounts of river water – AGL alone is asking for over two Sydney Harbours' worth of water just for the rehabilitation of the Loy Yang A mine.
Having your say on AGL's rehabilitation plans will help create a healthier future for the Latrobe Valley and everyone who depends on the Latrobe River system.
AGL's applications are just the first of many mines needing rehabilitation to come, so it’s crucial for the community to have a say and for government to listen and get this right.
Setting a strong precedent will shape how future rehabilitations are managed and ensure better outcomes in the future.
Background
Click on each heading to read more.
In October 2023, the Latrobe Valley Regional Rehabilitation Strategy outlined plans for the closure of Loy Yang A power station and mine; and Loy Yang B power station. Old mines can harm local communities and the environment, so it's essential for the companies that have profited multi-billions of dollars from them, to clean up and rehabilitate the sites to reduce lasting impacts.
The current operator of Loy Yang A power station and mine is AGL. They plan to rehabilitate the mine by flooding the pits with vast amounts of river water from the Latrobe River. To access this river water, they need to apply for permission to the state Minister for Water, Harriet Shing, for a "bulk water entitlement".
This application has been submitted, and it represents the first in a series of approvals for the rehabilitation of AGL’s mines. But before the Minister considers it, the community has an opportunity to provide feedback. That’s what this consultation is all about!
Because coal power generation takes a lot of water for operation, both AGL and the operators of Loy Yang B, Southern Rural Water, already have bulk water entitlements in place to cover their operations. So, in addition to applying for a new bulk water entitlement to rehabilitate Loy Yang A mine – both operators are also applying to amend their existing entitlements to reflect the planned closure of the power stations.
To put it simply, this consultation is your opportunity to have your say on three different but related bulk water entitlements:
- Application A - A new bulk water entitlement for AGL to access river water for the purpose of Loy Yang A mine rehabilitation.
- Application B - An amendment to AGL’s existing water entitlement related to the operations of Loy Yang A power station.
- Application C - An amendment to Southern Rural Water’s existing water entitlement related to the operations of Loy Yang B power station.
The Minister must consider the submissions you make when deciding whether to accept or reject the applications. She also must consider the matters under s 40 of the Water Act 1989 (Vic), including:
- The existing and projected availability of water in the area (s 40(1)(b);
- The existing and projected quality of water in the area (s 40(1)(c));
- The permissible consumptive volume of the area (s 40(ba));
- Adverse effects that the BWE would have on existing authorised uses of water, waterways or aquifers, the maintenance of the environmental water reserve objective (s 40(1)(d));
- Water to which the applicant is already entitled (s 401(e));
- The need to protect the environment including the riparian and riverine environment (s 40 (1)(g));
- Relevant government policies (s 40(1)(g)-(j));
- Whether the source of water is within a heritage area (s 40(1)(ja));
- The proper management of the waterway and its surrounds or of the aquifer (s 40(k));
- The purposes for which the water is to be used (s 40(1)(l));
- The needs of the applicant (s 40(1)(m));
- Any relevant reports of findings made under any Act which are available to the Minister (s 40(1)(n)); and
- Other matters the Minister thinks fit (s 40(1)(o)).
The Minister may either approve or refuse the application(s).1
The Minister must not approve an application unless she considers that the entitlement is not likely to have any significant impact on the matters required to be considered under s 40 (listed above).2
This is why it is so important for you to have your say.
You should state clearly what you think about AGL's application and why in your submission.
1 s 42(1)
2 s 42
Getting started
All submissions must be made through the Victorian Department of Energy, Environment, and Climate Action's online survey.
You can either:
- Answer their pre-filled questions,
- Attach a written submission and submit it through the survey
- Or, a combination of both.
We encourage you to make a written submission and attach it through the survey so that you can tailor it to suit your concerns.
You must lodge your submission by midnight on Sunday 15 December 2024.
If you answer the survey's pre-filled questions:
- You can provide your comments by entering them in the text boxes provided.
- Once you have finished, click through to the final page and click "submit" to lodge your comments.
If you want to write a longer submission:
- Using Word or your preferred text editor, write your document and save it onto your computer.
- Open the online survey.
- Upload your document: In question 2, select “I will attach my own submission.” Click the arrow below to upload your saved document.
- Finish the survey: Answer the questions marked "required" and scroll through all 5 pages by clicking "Next" to move forward.
- Submit: On the final page (page 5), click "Submit." You will receive a submission ID number when your submission is complete.
If you have any questions, need additional support or want to share your submission with us, get in touch at [email protected].
According to EJA lawyers: what are the key issues?
Environmental Justice Australia lawyers have carefully reviewed the applications.
Click on each heading to read more EJA lawyer views on the key issues
These applications are the first in a series of bulk water entitlements for mine rehabilitation in the Latrobe Valley, with an additional application for the Yallourn mine expected in the coming months. Each application involves a huge amount of water, and together, the cumulative impact on the Latrobe River system will undoubtedly be enormous. However, since these applications are being submitted separately, it's hard for the community to accurately provide feedback on the overall impact.
Based on existing estimates, Yallourn will need at least 630GL of water for rehabilitation,3 while Hazelwood will require 637GL.4 Combined with the 1074GL requested in AGL’s Loy Yang mine application,5 the total water demand for mine rehabilitation in the Valley would be a staggering 2,341GL—more than four and a half times the size of Sydney Harbour. This represents a massive draw on a river system already under strain, made worse by a drying climate.
If you feel strongly about this issue, you can ask the Minister to:
- Refuse the application until all bulk water entitlement applications can be reviewed together and the overall impacts of drawing water for three pit lakes can be considered together.
- Consider the cumulative impacts of diverting water for all three pit lakes, climate change impacts, as well as other industries which contribute to pollution in the area.
3 LVRRS Amendment, Latrobe-Valley-Regional-Rehabilitation-Strategy-Amendment.pdf p 4
4 Hazelwood EES Referral Form, Microsoft Word - Hazelwood EES Referral - submission 2DEC21.docx p 47
5 See p 2 of Application A (35.8GL x 30 years = 1074GL)
The large-scale extraction of water for mine rehabilitation presents a serious risk to the Latrobe River system and surrounding ecosystems, especially in the face of a drying and more unpredictable climate. Removing such a large volume of water could have catastrophic effects on the river and the downstream Gippsland Lakes, which are internationally significant, Ramsar-protected wetlands
These concerns are heightened because the Latrobe River system plays a key role in diluting pollution from coal mining, power generation, and other industries. With less water available due to climate change, and the bulk water entitlements, the river’s flow could be disrupted, leading to stagnant, polluted water that threatens the health of the entire ecosystem downstream.
When making your submission, you might like to consider the downstream impacts of the application such as:
- What environmental and cultural impacts downstream are you concerned about?
- How will a drying climate and climate change impact the availability of water and affect the environment and cultural values downstream?
- What species are likely to be impacted?
- How will this impact your enjoyment of the river and water resources?
- Should there be flexibility to use manufactured water built into the bulk water entitlement in the event of a drying climate and limited water availability?
- How will downstream impacts be appropriately mitigated and monitored? Who will pay for this?
The application for the rehabilitation of Loy Yang A mine proposes only one solution: creating a pit lake by flooding the mine with water from the Latrobe River. This approach is based on the Victorian Government’s Latrobe Valley Regional Rehabilitation Strategy (LVRRS). However, the strategy lacks clarity in explaining how it determined that this was the best rehabilitation option.
The LVRRS also provides little explanation for why the Latrobe River was chosen as the water source for rehabilitation, rather than alternatives like manufactured water. While the LVRRS acknowledges that manufactured water is technically feasible, it claims it is too complex and expensive. But cost alone shouldn’t rule out a solution—especially when coal mine operators have profited for years and should be held accountable for cleaning up the mines in the least harmful way for the environment and public. After
public pressure, the government has released a report into why they consider
manufactured water is not feasible for pit lakes, available on their website here.
On behalf of a local community group, EJA lawyers sought this material via a Freedom of Information (FOI) request in April 2024. We are still yet to be provided with this information.
EJA lawyers believe the Minister should make all analysis available to the public for consultation, including why pit lake rehabilitation was selected for the region.
The Minister should allow the public to access this information to inform their submissions. The Minister should not make a decision until this has occurred.
Bulk water entitlements are not just permission to extract river water—they should involve a cost that corporations must pay to the State Government. However, it is unclear how much AGL and other coal mine operators are paying for access to this water.
Although Applications B & C reference storage costs, it does not provide a clear breakdown or the total cost of water extraction. Concerningly, Application A makes no reference to any costs. Given the value and scarcity of water, the public should have full transparency on the costs associated with using it for mine rehabilitation.
EJA lawyers believe the Minister should make all information regarding these costs publicly available for consultation to inform their submissions. The Minister should not make a decision until this has occurred.
Application C aims to clarify the future use of river water required for the operation of Loy Yang B power station, but it fails to specify a closure date for the station. Despite claims in the application that it provides a "clear and unambiguous trigger point" and the website stating it offers a "clearly identifiable closure date," no actual date is provided.
At present, Loy Yang B power station is set to close in 2047, but Loy Yang A mine, which supplies the station with coal, is set to close 12 years earlier in 2035. The application does not explain how these conflicting timelines will be addressed.
Considering the high degree of public interest, and the significant amount of resources being dedicated to assessing the bulk water entitlements, EJA lawyers believe the Minister should require Loy Yang B to confirm its closure date publicly prior to considering the applications.
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