Insurance to cover Vic fire clean-up cost

The operator of a Melbourne recycling plant has confirmed insurance will cover the clean-up cost of a massive fire that burned for a fortnight through bales of plastic and paper, sending toxic smoke across the city.

About 20,000 tonnes of fire-damaged material has been removed from the Coolaroo recycling plant at the expense of site owner SKM Recycling, Environment Protection Authority Victoria boss Nial Finegan says.

"The polluter pays, so SKM will be paying for this. But the taxpayer is not - that's the important message," Mr Finegan told ABC Radio on Friday.

All the damaged plastics and other recyclables have been moved to landfill because they are no longer usable, the EPA says.

SKM said on Friday it was always going to be responsible for the clean-up cost, which is covered by insurance.

"There is nothing new about that; there was never any other situation," a company spokesman told AAP.

"The EPA CEO was just confirming what has always been the position and he just wanted to make it clear that taxpayers wouldn't be paying."

The fire started on July 13 and hundreds of people living around the site were forced to evacuate due to toxic smoke and ash.

A number were hospitalised and have ongoing health concerns.

After burning for almost a fortnight, the fire was extinguished on July 27 when the investigation and mammoth clean-up began.

A class action was filed in the Victorian Supreme Court in July against SKM on behalf of about 100 affected residents.

The company is yet to respond.

"It is just something that will proceed in the background until things become a bit clearer," the SKM spokesman said.

The taskforce investigating the fire is yet to present its findings, with Mr Finegan saying it would "take a long time to do because we're doing it in a very proper way".