Since the commencement of mining at the strip coal mine at Goonyella, Queensland, Australia, serious stability problems have been experienced in both the spoil piles and the highwalls. A collaborative investigation was commenced in 1974 and the significant factors influencing stability have now been defined. This paper outlines the results of field and laboratory studies associated with the investigation and describes the various numerical methods used to analyse stability. The main conclusions, which are similar for both the spoil piles and the highwalls, are that the failures generally occur along two or three planar surfaces; that the shear strength in the basal areas is controlled by the sensitivity of the materials to moisture and shear strain prior to failure; and that tensile cracking due to stress relief and blasting is the dominant factor in the upper or escarpment areas. Possible control and remedial measures are discussed briefly.