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McPhillamys gold mine, near Bathurst, approved to operate open-cut pit for 11 years

The company has received conditional approval to extract gold for up to 11 years.  (ABC Central West: Micaela Hambrett)

An independent planning panel says it's approving a gold mine in NSW's Central West, after determining the benefits will outweigh any negative social and environmental implications. 

Regis Resources has received approval, with conditions, for its McPhillamy's Gold Mine at Blayney, near Bathurst, which includes an open-cut pit and tailings storage at the head of the Belubula River, as well as a pipeline to transfer water from Lithgow's Mount Piper Power Station. 

The company intends to extract up to 60 million tonnes of ore, and, produce up to 2 million ounces of gold, during the mine's estimated 11-year life span. 

The plans also include the construction of a 90-kilometre pipeline to supply excess water to the site from a coal mine near Lithgow.

The Department of Planning and Environment recommended the mine for approval, but, it was up to the NSW Independent Planning Commission (IPC) to make the final determination due to the number of submissions opposing the plan.

There was significant community debate about the mine. (ABC Central West: Xanthe Gregory)

The three-member panel found "on balance" the project was in the public interest.

The benefits, the IPC said, included "producing a significant mineral resource to meet the growing demand for raw materials".

It also said the mine would create employment, training and investment opportunities for the community, which would "outweigh the negative impacts".

Regis Resources wants to build the open-cut mine in the rural area. (ABC Central West: Tim Fookes )

In February, community members fronted IPC commissioners at a meeting.

About 80 people spoke, with most opposing the mine due to environmental concerns, particularly about water contamination, and, dust.

At least 85 people live within 2 kilometres of the proposed mine.

The IPC today acknowledged the various concerns about the mine, including its impact on Aboriginal cultural heritage, but said they could be "effectively avoided, minimised or offset through strict conditions".

In a statement to the Australian Stock Exchange, Regis Resources said it was "pleased" with the result.

"McPhillamys is one of Australia's largest undeveloped open-pittable gold resources and underpins significant value potential for Regis," said managing director Jim Beyer.

"We look forward to working with local communities, stakeholders and companies to mitigate the risks and concerns surrounding the project," he said.

Local environmental organisation The Belubula Headwaters Protection Group said it was disappointed with the decision but not surprised.

"We're working in a system that's skewed to approve projects like this, so unfortunately it's not surprising," said President Daniel Sutton.

Many locals are concerned about potential impacts on the Belubula River. (ABC Central West: Xanthe Gregory)

The group said it was good to see conditions placed on the mine to minimise impacts such as noise, dust and water but the focus should now be on enforcement.

"It's one thing for something to get approved and have conditions on it, but it's entirely different to actually enforce them," Mr Sutton said.

The group is now considering whether to appeal the decision to the Land and Environment Court.

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