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The State Coal Mine was established in 1909, primarily in order to assure supplies of coal for the State's railways and other government departments and state industries in the event of the existing sources of supply being affected by industrial disputes.
In June 1911 control of the mine was transferred from the Department of Mines (VA 612) to the Victorian Railways Commissioners (VA 2876).
The Mine was closed in 1968 as other types of fuel took precedence over coal. The State Coal Mines Winding Up Act was passed in 1968 and the State Coal Mine officially closed on 31 December.