The NSW Environment Protection Authority (EPA) will immediately review the licence of Australia's oldest continuously operated underground coal mine after runoff was discovered in national park waterways.
Peabody Energy was ordered to clean up polluted water flowing from its Metropolitan coal mine at Helensburgh into Camp Gully Creek following incidents in July and September.
The creek flows into the Hacking River which is one of the main waterways of the NSW Royal National Park.
EPA officers conducting a routine check of the creek on Thursday observed "grey, turbid water with possible coal material present".
In response, the NSW EPA has brought forward its review of the mine's environment licence by two years and will consider suspending the miner's licence.
"This review will commence immediately as the repeated discharges of coal material into our pristine environment is unacceptable," NSW EPA chief executive Tony Chappel said.
"It is disappointing that we have now seen multiple incidents in a matter of months."
"We expect far better from our industry neighbours who have a responsibility to operate in accordance with their licence for the health of the environment and community."
In July a blocked pipe at the sedimentation dam caused an overflow of water containing coal sediment to run into Camp Gully Creek.
The EPA said the review will aim to improve water management and the management of discharges at the mine.
'It just keeps happening'
The Sutherland Shire Environment Centre (SSEC) has been monitoring pollution from the mine and has found evidence of coal sludge downstream at Audley Weir.
SSEC spokesperson Dr Catherine Reynolds said the mine has shown it was not fit to operate in the area.
"We have seen multiple incidents this year and despite multiple warnings and multiple warnings and multiple cautions it hasn't made a difference it just keeps happening," Dr Reynolds said.
"The mine has shown it cannot operate in this location without causing unacceptable pollution impacts."
A spokesperson for Peabody Energy said the company was working closely with the EPA on a comprehensive plan to improve surface water management and satisfy the requirements for next year's review.
"Yesterday equipment being used to maintain our clean water drainage systems inadvertently disturbed sediment," the statement said.
"Metropolitan Collieries remains 100 per cent committed to protecting the local environment and meeting community expectations of our operations.
"We want to ensure the Metropolitan Mine continues to provide jobs that support hundreds of local mining families and that sustain local businesses."
