New South Wales Government approval for the extension of a coalmine environmentalists say would have contaminated Sydney's water supply has been overturned in court.
Activists had been fighting a 2015 decision to add about 13 years to the life of Springvale colliery's underground operations.
The "4nature" group challenged the plans unsuccessfully in the Land and Environment Court last year, but was celebrating today after the NSW Court of Appeal ruled in their favour.
They were concerned the expansion, near to heritage-listed swamps in the Blue Mountains National Park, would pollute water entering catchments which feed into Sydney's water supply.
The mine, operated by Thai company Centennial Coal, employs about 300 workers and is the sole supplier of coal to the Mount Piper power station.
Warwick Pearce, the 4nature spokesman, said today's win was significant.
"It's very good for people in Sydney because it's protecting drinking water and protecting the national park," he said.
"There was an enormous amount of mine wastewater going into the Cox's River and hopefully that will be reduced or stopped all together."
Mine will continue to operate
Concerns about water contamination were last year backed up by a hydrogeology report obtained by the ABC.
That report, by hydrogeologists Steven Pells and Dr Philip Pells, was commissioned by the Colong Foundation for Wilderness.
Centennial Coal's Katie Brassil said today's decision was disappointing and she disputed claims the mine polluted water supplies.
"Although we were hoping for the best, we had planned for the worst," she said.
"We have a number of strategies in place to ensure that we can continue operating the mine.
"This is really important because Springvale Mine employs over 300 local people in the Lithgow community."
The NSW Government said it was reviewing the decision.
