Reports say Queensland taxpayers face a bill of over $3 billion to clean up the state's coal mines.

Internal government reports obtained by media outlets say there is a multi-billion-dollar funding black hole for environmental rehabilitation.

Government documents allegedly state that 90 per cent of the financial assurance (FA) given by the coal industry was “incorrect” and “too low”.

It means that when these companies close up shop, at least $3.2 billion worth of environmental cleaning will be dumped onto the Queensland taxpayer.

The Queensland Environment Department has distanced itself from the report is produced, telling the ABC that the “methodology and calculations found in this document have not yet been ratified by senior management”.

The Queensland Resources Council argued that the state was actually holding too much in financial assurance from mining companies.

Queensland senator Larissa Waters has called for a Senate inquiry.

“With the support of Labor and four crossbenchers, we could establish a Senate inquiry into how the Federal Government could protect taxpayers from footing the bill for the damage to our land, water and communities inflicted by big mining companies,” she said.

“By collecting adequate rehabilitation funds upfront, we can provide local jobs in rehabilitation, as soon as coal mines close down due to global trends.”

If the Queensland Government was able to miss the looming black hole, it can be assumed that other state might face a bigger rehab bill than they are expecting.

Reports say the New South Wales Audit Office is considering a review of mine rehabilitation deposits, so that its taxpayers are not left liable for clean-up costs.