The state government has approved a five-year extension of mining at the Bloomfield Coal Mine near Maitland, paving the way for continued coal production despite objections about noise, biodiversity loss, greenhouse gas emissions and water impacts.
Coal has been mined at the site for about 170 years, and now has approval to continue until at least December 31, 2035.
The Department of Planning, Housing and Infrastructure approved the extension this week.
The department said the proposal would deliver jobs, royalty payments and economic benefits and that it was satisfied environmental impacts could be managed.
The modification drew 231 public submissions, 27 of which objected to the proposal.
A report from the decision maker, the executive director of Energy, Resources and Industry Assessments under delegation from the minister for planning and public spaces, said the development was much the same as what had already been approved.
"The modification would provide a range of benefits for the region and the state as a whole, including royalty payments, and would support the continued benefits of coal production including economic benefits and ongoing employment," the report said.
"The impacts on the community and the environment can be appropriately minimised, managed or offset to an acceptable level, in accordance with applicable NSW government policies and standards."
The report said issues raised by the community and in submissions had been addressed through conditions of consent.
Planning officials on Bloomfield had considered concerns about groundwater, surface water and creek systems, as well as noise, which was raised by nearby residents.
The department said the mine had historically complied with noise limits and received few complaints in recent years.
"Weighing all relevant considerations, the modification is in the public interest," the report said.
The extension will see mining continue for a further five years and will involve the clearing of more than 51 hectares of native vegetation, including part of the endangered Lower Hunter Spotted Gum-Ironbark Forest ecological community.
While the department acknowledged the area is a habitat for threatened species, it found any effects could be offset through revegetation works and the state government's biodiversity offsets scheme.
The project is expected to increase greenhouse gas emissions by about 17,700 tonnes of carbon dioxide equivalent each year on average.
Lock the Gate Alliance's NSW coordinator Nic Clyde said it was an example the government had "ignored clear advice ... that more coal extensions aren't compatible with a safe climate future".
"The state government hasn't refused a single coal project since the 2023 election," Mr Clyde said.
He said the stakes for the region were clear.
"Next week the Independent Planning Commission will hold public hearings on the Hunter Valley Operations Continuation Project, the largest ever coal proposal in NSW history," he said.
"Communities across New South Wales are already paying the price for climate change through rising food, energy and insurance costs. If NSW continues to allow new coal projects, it will lock in more climate pollution, and more frequent bushfires, floods and heatwaves."
The department said those emissions would account for about 0.017 per cent of the state's total emissions in target years.
A greenhouse gas mitigation plan will have to be prepared in consultation with the NSW Environment Protection Authority within six months.
Underground mining at the site finished in 1992 and the mine is now solely an open-cut operation, with Bloomfield allowed to extract up to 1.3 million tonnes of run-of-mine coal each year.
