Economically important mining operations and increasing recognition of the threat that global climate change poses to Australia's fragile ecosystems requires the development and deployment of innovative and cost effective technologies for mine rehabilitation, carbon sequestration and bioenergy production. Synthetic Natural Gas (SNG) has been proposed as a viable alternative fuel source capable of meeting part of this demand. In addition to providing a renewable energy source, the production of SNG creates a carbon rich bio-product known as 'biochar'. It is postulated that biochar could be used to mitigate the threat of climate change by sequestering carbon from the atmosphere and improving the fertility of mine spoils, facilitating the growth of 'carbon sinks'. Here, we investigate the interaction of biochar with mine spoils and its effects on sustaining plant growth to improve revegetation, drainage and long term management practices. Using a series of greenhouse pot trials, Eucalyptus crebra and different mycorrhizal and non-mycorrhizal grass species were grown in mine spoils treated with 8% biochar. Analysis involving a suite of abiotic approaches showed significant beneficial changes in plant productivity and soil physical properties including increases in mine spoils water holding capacity. Next generation sequencing and real-time PCR revealed that revegetated mine spoils treated with 8% biochar stimulated the growth of plant beneficial soil microorganisms important for successful long term management practices and facilitate the growth of soil 'carbon sinks'. Collectively, our data demonstrate that bio-amendment of mine spoils with biochar is an important management option for mitigation of the negative impacts of mining and enhancing carbon sequestration and have the potential to re-establish self-sustaining vegetative cover on reclaimed mine lands.