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Huge rehab safety net boost for Hazelwood

Victorian taxpayers will be shielded from the mounting cost of rehabilitating the defunct Hazelwood mine site, with the state government increasing the operator's backup fund to $289 million.

The bond allows the government to draw on the money if Engie, Hazelwood's operator, doesn't fulfil its rehabilitation obligations, the government said in a statement on Friday.

The previous bond for the mine was deemed insufficient to cover the cost of rehabilitation, leading to a 294 per cent increase to $289 million, up from $73.4 million.