The opencut operation supplies the nearby Yallourn power station and disruption to the coal supply has raised concerns the station may be unable to meet power demands as temperatures increase.

A report by Australian Associated Press said work to restore the mine will involve diverting the flooded Latrobe River to stem the flow of water into the mine and could take up to a week to complete.

A representative from power station operator TRUenergy told AAP the station is currently operating at 30% capacity after two of the four generating units were disrupted in the flooding and a third unit is undergoing scheduled maintenance.

The spokesperson said leakage in the mine had been detected days before the river burst its bank causing the landslide and the damage caused by the flooding left no choice but to divert the river to restore flow downstream.

According to AAP stockpiles of coal at the power station are sufficient to supply the plant until the mine is back in production.