One of the state's largest open cut coal mines will extend its operations for another six years, extracting an additional 12 million tonnes of coal, as a landmark court battle over an even greater expansion continues in the country's highest court.
The NSW government allowed mining giant MACH Energy to continue mining until 2032 this week, and increase the extraction rate of coal by two million tonnes each year, four months before it was slated to expire.
The decision, revealed Friday, was welcomed by Upper Hunter MP Dave Layzell, who said the extension was crucial for securing jobs in the region.
The decision comes as MACH Energy continues its High Court fight to allow the mine to continue until 2048 and double its annual extraction rate in the process.
If successful, the company could extract an additional 247 million tonnes of coal by the end of the extension period.
The larger project was initially approved in 2022 by the NSW Independent Planning Commission before an Upper Hunter environment group successfully argued in court the mine's climate impacts were not properly considered.
The court ultimately ruled the approval was unlawful, and that planning authorities were legally required to consider the climate impact of scope three emissions - caused when the coal is eventually burnt, including overseas - on local communities.
The Denman Aberdeen Muswellbrook Scone Healthy Environment Group, led by Upper Hunter residents Wendy Wales and Tony Lonergan, has been challenging the operator as it seeks higher adjudication.
In May, Ms Wales said a High Court decision in the environment group's favour would set a climate litigation precedent that could "turn a super tanker around".
"We really need all the wins we can get," she told AAP at the time.
"And this is a substantial one for providing courage to politicians, perhaps, that we've got more evidence and more reason to move away from export coal."
In a statement the same month, the mining company said it had "actively pursued all available options to ensure the continuity of this important project".
It added it would "continue to operate in alignment with existing approvals and conditions and seek to provide long term continuity and certainty for its staff, contractors, customers and the local community".
Mr Layzell, on Saturday, told the Newcastle Herald, the mine's Mod 8 approval this week represented security for the estimated 500 workers employed there, as well as a necessary bulwark against economic upheaval as the region's other mines approach the end of their operational lives.
"It's really important that we keep this project operating so that we don't lose jobs," Mr Layzell said. "We are relying on this extension project to go ahead so that it can soak up jobs that will become available, such as at Mount Arthur, which is closing in a few years."
"In the overall planning, we're very reliant on these extension projects going ahead. We want to see the bigger project happen but at the moment, keeping the mine operating is very important."
Mr Layzell said he understood community concerns over the mine's emissions, and the greater impact the extensions would have on the environment, but said he feared the potential economic fallout of shuttered mines more.
"When you're on the ground in the places like Muswellbrook, you realise that the economic ramifications of stopping coal mining in this area are huge," he said. "I am more fearful of the impact of poverty than I am of the impacts of climate change overall."
"Perhaps people will say that is greedy, but we are working toward a future that will have new non-coal-related industries and we're not there yet. And until there are high-paid jobs for this town in new industries that we can transfer from mining, I will always support coal mining in this area."
In a submission opposing the application to extend the mine as its fight in the High Court continues, lawyers for the region's Healthy Environment Group argued "expanded coal mines are inconsistent with the state's Net Zero targets", citing Net Zero Commission reporting on coal mine emissions released in December last year.
The group argued that approving the interim expansion would "predetermine the effect of any decision by the High Court", because it would allow the expanded mine to go ahead even if MACH Energy is unsuccessful in its appeal.
The application ultimately received more than 800 submissions, 249 of which objected. Key concerns raised by residents and organisations related to the impact of the expansion on the region's natural resources, emissions, cultural heritage, and economic cost-benefit of the proposal.
During a visit to the Hunter in December last year, Premier Chris Minns said mining was critical to the state's and the region's economy.
"It is our single biggest export," he said. "Yes, our trading partners are getting out of it. Yes, the people that buy coal will buy less of it in the years ahead. But ultimately I cannot shut it down overnight. It would be irresponsible to do so."
Mr Minns said, even as the state was "running a million miles an hour" to boost renewable energy generation and reduce the state's reliance on fossil fuels, "we are trying to manage this transition in the economy as best we can and that is not consistent with shutting it down overnight".
