In a decision on Thursday the department acknowledged reservations about mine owner KEPCO’s conservative assessment of groundwater impacts, the significant noise impacts on some properties, and subsidence impacts of more than 1700 hectares.

But the department found subsidence was acceptable because it would occur on land owned by KEPCO or in the Bylong State Forest, and water concerns could be addressed by an “extensive groundwater monitoring network” to be developed by the company.

“In the unlikely event that there are impacts from the project on private water users, compensatory water supply be provided,” the Department found.

Underground longwall mining would result in subsidence effects and impacts over 1,714 hectares, principally on land owned by KEPCO and in the Bylong State Forest.  

It said the proposed mine, between Denman and Mudgee in a valley that has not been mined for coal before, would employ up to 470 workers at full production, and generate $290 million in royalties for the NSW Government and $302 million in company taxes to the Federal Government.

The approval recommendation came despite the department acknowledging the “significant” social impacts in the valley.

“KEPCO has been acquiring land in and around the site, with the result that there are now very few privately-owned properties remaining in the immediate vicinity of the mine, including in Bylong village,” the department assessment report found.

“This has resulted in significant social impacts and a decline in the local population in the immediate vicinity of the mine that would take many years to recover.” 

The department’s approval recommendation was slammed by Lock the Gate Alliance as “unfathomable”, with too many unanswered questions about impacts that had been left to monitoring and mitigation, without specific detail.

“The Department’s support for the mine comes despite acknowledging serious impacts on a productive alluvial aquifer, the loss of numerous heritage sites, and risks to the social cohesion of the stunning agricultural valley,” Lock the Gate Alliance spokesperson Georgina Wood said.

 “To recommend approval of this open cut coal mine in a productive and picturesque valley that has never before been subject to mining is frankly unfathomable.It will involve digging up graves and churches, cutting open strategic agricultural land, undermining culturally cherished Aboriginal ochre quarries, drawing down an alluvial aquifer and emptying a scenic and productive agricultural valley of inhabitants.”

Ms Wood said the Department of Planning had one answer when it came to coal mines.

“No matter how much damage they will do, the department says the mine should proceed,” she said.

“They said it with the Shenhua mine on the Liverpool Plains, they said it with the Drayton South mine, and here they are, with the Bylong project, pushing again for coal mining at any cost.”

Bylong landholder Graeme Turner said the coal project had “already devastated my community”.

“They’ve bought up almost the whole valley and torn the social fabric apart. How will those of us that are left behind keep our farms going when they’re sucking the aquifer dry and destroying the landscape?”

The mine project will be reviewed by the Planning and Assessment Commission, which disagreed with the Department of Planning’s recommended approval of the Drayton South project.

Lock the Gate criticised the NSW Government’s mine approval process which negates a merits appeal of mine applications in court if a Planning and Assessment Commission hearing is held.

Mr Turner said the remaining community members had advised the government they were not attending a PAC hearing.

“We know a stitch up when we see one. But we’ll be telling the commission that this place, like Drayton South, is worth more intact than it is as a dirty great hole in the ground,” Mr Turner said.