The Western Australian government's Collie Basin blueprint includes $58.6 million for new industrial infrastructure, mine rehabilitation planning, and workforce support and redundancies.
"For generations, Collie has powered WA, and under my government it will continue to power our state's future," Premier Roger Cook told reporters on Wednesday.
The plan has three priorities: energy security, workforce transition, and future jobs in the region south of Perth.
"They recognise that Collie is critical to WA's energy future, and that any plan for its future must put workers and the community at its centre," Mr Cook said.
The plan could also result in Collie's two marginal coal mines merging amid dwindling demand for the fossil fuel.
"We will continue discussions with Griffin Coal and Premier Coal and other stakeholders on opportunities," Mr Cook said.
"One is operating under significant subsidy directly from the state and the other, whose main customer is Synergy, is a very marginal operation.
"You might see one take over the other, or you might see a third party come in and take over both of them."
The Collie Basin blueprint funding includes $2.8 million for a rehabilitation and future land-use master plan.
"The master plan will identify assets that will be retained, reused, and repurposed after the mines' closure," Mr Cook said.
The final rehabilitation cost would be "eye-watering".
"The rehabilitation program will be extensive, long-term ... but there are huge opportunities because it means we can re-imagine the whole Collie Basin," Mr Cook said.
"It's actually a pretty exciting part of the program."
A further $16.8 million has been allocated to retrain and redeploy workers, and fund redundancies.
About $39 million in funding will support building roads, power, and water infrastructure in an industrial estate.
Opposition energy spokesman Steve Thomas said the funding was an attempt to hide the failure of the WA energy transition to renewables and Collie's floundering transition away from coal.
More than $700 million of taxpayer funds have already been invested to help Collie transition away from coal and support the town's 7500 residents.
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