In areas where land suitable for development is a scarce resource, an upgraded post-mining land use can result in economic benefits to both the mining company and to the community.A study undertaken at Aberdare Colliery near Ipswich during 198611987 assessed the costs and benefits of developing the site following mining for grazing, forestry and residential uses. The proposed fmal land use plan comprised a combination of these uses that can be upgraded to higher valued uses once subsidence monitoring of backfilled open-cut areas and dumps indicates that total settlement has reached acceptable levels for development to proceed.The study involved the documentation of existing site environmental parameters and the delineation of site opportunities and constraints. The unpredictable nature of settlement over backfilled open-cuts and overburden dumps represents the major constraint to urban development on mined areas.