The New South Wales government admits the market has turned its back on building new coal mines and has turned its focus to expanding existing operations as it rules out more exploration zones.
The potential of greenfield mines in the Central West and Hunter regions faced years of community opposition after the state government identified tens of thousands of hectares of land as suitable for potential coal exploration.
Last year it deemed the zones 'Wollombi' in the Hunter region and 'Ganguddy-Kelgoola' and 'Wollar' in the Central West as part of the Future of Coal statement, a strategic plan so it would have "control over the release of exploration areas".
Mr Toole today told budget estimates they had now been deemed as not suitable because of the environmental and economic implications of greenfield infrastructure.
It comes less than a week after more than 60 people representing 13 local environment groups protested against further coal exploration in the region outside his Bathurst electorate office.
"These three areas will now be removed from the map related to the Strategic Statement of Coal Exploration and Mining," Mr Toole said.
The recommendations came from the interagency Advisory Body of Strategic Release.
The Deputy Premier said there had been a clear market shift in interest in building new coal mines.
"Rather than looking at greenfield sites, we'll be looking at existing mine sites and whether they can extend or expand that site," he said.
Focus shifts to existing mines
To the west of Mudgee, plans to explore the Ganguddy-Kelgoola area for coal, which covered almost 28,000 hectares bordering the Wollemi National Park, would have affected 61 landholders.
"Ganguddy-Kelgoola is not suitable because of uncertain economic prospects, significant infrastructure, environmental and cultural constraints," Mr Toole said.
The Wollombi exploration zone covered about 178 square kilometres in the Hunter.
"Wollombi is considered as not being suitable because of significant land-use conflicts, environmental and cultural constraints and uncertain economic prospects," Mr Toole said.
But the Nature Conservation Council (NCC) and locals from Wollar, near Rylstone, have slammed the state government for being hypocritical.
"Do they agree that there is no future in coal, as every credible scientist does or will they continue with this industry?," NCC's chief executive Chris Gambian said.
While the Wollar area has been removed from further consideration of strategic release because of limited market interest, Mr Toole also announced he has approved a new exploration licence for the Wilpinjong Mine, which the zone was adjacent to.
It means the owners, Peabody Energy, can explore 1,670 hectares of land where it wants to extend its current operation, the majority of which the company already owns.
"The decision to not have greenfield coal projects, fantastic news, but why shouldn't that same logic apply in the expansion projects?" Mr Gambian said.
It means the village of Wollar, where the last shop closed at the end of last year, will effectively be surrounded.
A win for some, loss for others
Bev Smiles moved to a property east of Wollar about 40 years ago and has spent decades fighting mine approvals, which she said even the state government had admitted to having decimated the community.
"It means the community is going to have to go back through the whole painful experience," Ms Smiles said.
"It's quite devastating for those of us remaining in the area and trying to keep our community alive."
In a statement, Peabody Energy said it welcomed the decision to grant exploration tenure in an area "that will support an extension of our existing Wilpinjong Mine and secure an ongoing future for our 500-strong workforce and their families".
The government's Future of Coal statement outlines that during the global transition away from the fossil fuel it "will continue to support the responsible development of our abundant, high-quality coal resources for the benefit of the state".
