Dr David Blackmore, director of environmental sustainability at the Department of Resources and Energy, was responding to concerns aired last week in a report from environmental think tank the Minerals Policy Institute.

The report had questioned whether mines would be rehabilitated properly if companies were forced to close for financial reasons, and the cupboard was bare.

But Dr Blackmore told the Mercury he was confident Russell Vale would be rehabilitated to his satisfaction.

Progressive rehabilitation work had been undertaken there in recent years, as the government gets involved throughout the mine’s life, not just at the end.

“When mines close, they don’t lock the gate and walk away until  that rehabilitation is completed to the government’s satisfaction,” he said.

Wollongong Coal does not appear likely to shut up shop soon, but it does not have planning permission to mine at Russell Vale, and the site is in care and maintenance mode.

Its Wongawilli mine may be restarted soon but cash flow problems, plus a $181 million loss declared recently, dog the miner.

Dr Blackmore said Wollongong Coal’s rehabilitation bond was paid up. The rehab system involved periodic inspections by DRE staff which can result in bonds being increased or reduced.

In this case, an inspection determined bond needed to be increased from $5.66 million to $7.52 million, in line with a revised assessment of environmental damage.

But Wollongong Coal was slow to pay the $1.86 million difference and DRE took compliance action in March, resulting it being paid. The DRE did not say when the inspection happened.

Dr Blackmore said the NSW government holds $2.1 billion in rehabilitation securities, and no miners had defaulted on their rehabilitation bond in the past decade.