The New South Wales Independent Planning Commission (IPC) has rejected plans for a new coal mine in the Southern Highlands, finding it posed too great a risk for underground water.
The South Korean-owned Hume Coal wanted to build a mine at Berrima that would have extracted 50 million tonnes of coal over 23 years.
It promised 300 jobs.
In June the NSW Department of Planning cited concerns over groundwater and rejected the proposal.
On Tuesday the IPC issued a strong refusal after finding the impacts could not be reasonably and satisfactorily avoided, mitigated, or managed through conditions.
It said the project posed an unacceptable risk to groundwater based on modelling with limited parameters and input data.
It also found the project's "make-good" provisions were impractical because of the number of private bores that would be impacted.
It said the mine would also pose an unacceptable risk to Sydney's drinking water catchment.
The IPC said the project would result in adverse social impacts for residents' way of life.
Community delighted
Michael Verkberkt from Battle for Berrima said the process had taken an enormous toll on the community.
“We are absolutely thrilled — we are so glad this has finally come to fruition after such a long time," he said.
"This mining lease should never have been in this area.
Moss Vale Rural and Chamber of Commerce president Brigid Kennedy, also a restaurateur and farmer, said the decision would give businesses hope.
"I think I have held my breath for 10 years and I feel I can finally let it out," she said.
“I am so excited — the community will be doing cartwheels down the Berrima main street.
"Hopefully it will help businesses struggling though COVID hang on and flourish."
Peter Martin from Coal Free Southern Highlands said the decision was long overdue.
"It's been 11 years and 11 days since we had our first meeting [about the project] in the Sutton Forrest Hall," he said.
"With climate change on top of us now, none of these projects should ever be considered and we are thankful this one was knocked on the head.
"From here the Southern Highlands will go from strength to strength."
Hume Coal project manager Rod Doyle said he was disappointed with the ruling and would get direction from the company's head office.