A major environmental rehabilitation effort looms near the Great Ocean Road following the shut down of the Anglesea coal-fired power plant and open-cut mine after 46-years of operation.

The decision sees up to 85 people losing their jobs and follows the closure of the Alcoa Point Henry aluminum smelter last year, which the Anglesea plant had supplied electricity to.

Shop steward Graeme Kerr at the mine. Credit:Justin McManus

After the smelter's closure, Alcoa was unable to find a buyer for the 150 megawatt power plant and instead decided to shut it from August 31.

The decision will kick off negotiations between the state government's Earth Resources Regulator, the Environment Protection Authority and Alcoa on a closure rehabilitation plan for the 330-hectare site.