Upper Hunter MP David Layzell has told the newly formed Hunter Expert Panel that existing regulation of buffer zones around former mine sites is inhibiting the economic diversification of the region.
The 10-member panel has been appointed to provide advice to the state government regarding the Hunter's clean energy transition.
Mr Layzell has previously called for an overhaul of the state's planning laws to provide greater flexibility for post-mining land uses.
He said existing buffer zone regulations represented a major barrier for new industry in the region.
"The key disadvantage that we have is also our region's greatest strength. We have industrial land that sits vacant because it is covered by a mining lease. We have something that industries can't find anywhere else in the state - the land, infrastructure and qualified people. As these mining operations close we need to be ready for the future industries to rise," he said.
"The planning starts today, it certainly cannot wait until later when the mines actually close. We need to have planning certainty for business and private investment will do what needs to be done for all of us. The future is bright but we need to be able to unlock its potential."
BHP is presently consulting with the community on how to best rehabilitate the 6600 hectare Mt Arthur mine site, including buffer zones, when it closes in 2030.
The announcement that the mine will close, made in June this year, has highlighted the need to change existing laws that prevent buffer lands from being developed for up to 25 years.
Hunter Expert Panel Chairman Bob Hawes said existing buffer zone requirements were put in place at a time when the region's economic transition was not a high priority.
"They would have been thinking, based on the community concern at the time, that putting them back to the way they were would have been the most pleasing thing to do," Mr Hawes said.
"You can understand that context but things move on. Now the community recognises that there is a lot more potential in these buffer zones than putting a bit of grass down and planting some trees."
The need for mining buffer zone reform has also been recognised in the recently released Hunter Regional Plan 2041.
In addition to offering large areas of land for future industry, the buffers are usually close to transport and transmission infrastructure.
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