Lake Macquarie mine-filling fund secures $10 million federal commitment

newy.com.au – The federal government has committed $10 million to help cover mine-filling cost overruns in Lake Macquarie, targeting a financial risk that council says has held back housing and other development on land affected by historic coal mining.

The Lake Macquarie Mines Grouting Fund will provide financial assistance when the cost of filling underground voids exceeds a set cap. The aim is to give property owners and developers greater certainty about the expense of stabilising land before building.

Council established the fund’s framework in 2025 and says the federal investment will now allow it to operate.

Belmont, Charlestown, Glendale and Morisset are among the higher-demand centres affected by extensive underground mining, according to council. The fund is intended to help projects proceed in these areas by reducing exposure to unexpectedly high grouting costs, rather than covering all mine-filling work.

Lake Macquarie Mayor Adam Shultz said the funding would help bring forward development on land where underground conditions had long constrained investment.

“By tackling the legacy of underground mining, we’re removing one of the biggest barriers to investment and growth in our city,” he said.

Shortland MP Pat Conroy said uncertainty about grouting costs had delayed projects. He said the federal contribution would help get more homes built by providing assistance when mine-filling work proved more expensive than anticipated.

The commitment is aimed at supporting housing, jobs and infrastructure, although its practical effect will depend on developments proceeding.

Dantia chief executive Tim Browne said the funding would help Lake Macquarie compete for investment with locations where developers did not face the additional costs associated with old mine workings.

“This support helps level the playing field for Lake Macquarie compared with areas not impacted by historic mining, creating conditions that encourage new industries, investment and jobs,” he said.