The New South Wales Independent Planning Commission (IPC) has approved the Mount Pleasant Optimisation Project, which will allow a Hunter Valley coal mine to extend its life to 2048.
MACH Energy, the owner of the Mount Pleasant site, applied to extend the site's life and expand the open-cut pit to extract an additional 444 million tonnes of coal.
The Department of Planning and Environment recommended the extension's approval in June this year, but referred it to the IPC to conduct public consultations.
The IPC says the approval comes with strict conditions to monitor and mitigate impacts to air quality, noise, heritage, Aboriginal lands and greenhouse gas emissions.
"Air quality and noise impacts of the project are capable of being minimised, managed or at least compensated,' commissioners Alice Clark, Chris Fell AO and Terry Bailey said in their statement of reasons for approval.
"Opportunities exist for the applicant throughout the life of the project to deploy existing, emerging and future technologies to improve the abatement of greenhouse gas emissions."
The commission referred to the benefits for the local jobs market as a key reason for approval.
"The project would have a net positive economic impact in relation to employment through the provision of up to an average of 447 direct and indirect jobs in the Muswellbrook and Upper Hunter LGAs," it said.
"[The project will also provide] 643 full-time equivalent (FTE) jobs in the wider Hunter Valley region and 444 FTE jobs elsewhere in NSW."
The commissioners also pointed to the expected monetary benefits to the community.
"The project would result in approximately $140 million in incremental disposable income in the Muswellbrook and Upper Hunter LGAs, $189m in the wider Hunter Valley, $276m in NSW and $1.4 billion in incremental direct value added benefits," they said.
Environmental group slams approval
Environmental and transition activism group Lock The Gate Alliance says the IPC's approval is confusing and goes against calls to transition away from fossil fuels.
"What is required to solve this huge climate problem that we all know we need to deal with is an orderly transition away from coal," Nic Clyde said.
"At the moment the country is paying a high cost and coal mining companies are making a motza."
Mr Clyde recognised the project's approval would be attractive for some due to the job benefits, but said the environmental impact was more important.
"I think the women and men that work in the mines have a box seat to see what the impacts are," he said.
"It's understandable that miners are anxious about the future.
"But the bigger picture is we know we need to diversify the economy."
The ABC has contacted MACH Energy for comment.
