Daracon submitted an application in 2014 to expand the quarry, a move residents say will negatively impact the rural area through increased noise, air pollution and traffic issues from truck movements and blasting.

After the expansion application was first lodged, Daracon was found by the Land and Environment Court to be unlawfully operating the site, which led to the quarry's operations being significantly scaled back. The initial expansion proposal, which was to transport up to 1.5 million tonnes of material by road a year for 30 years, has also been downsized after agency and community feedback.

The Herald reported in March that residents were notified of a revised proposal to extract 1.1 million tonnes of material from the site each year for up to 25 years, with 500,000 tonnes transported by road annually through 280 truck movements a day and an expansion into new extraction areas.

The newly submitted plans also include construction of a new road to bypass Martins Creek village and road improvements along the primary haulage route. The maximum daily truck movements would be limited to 50 days per year and road haulage reduced from 3pm-6pm weekdays with none on Saturdays. More material would be hauled by rail, the quarry would operate between 7am and 6pm Monday to Saturday and there would be reduced speed limits for quarry trucks in Paterson.

Daracon says the proposed road transportation volumes are less than those hauled from the site by RailCorp from 2003/04 to 2010/11. It also said a traffic impact assessment found the proposed traffic would have a "minimal impact" on key intersections along the route and was not expected to adversely impact the safety of the road network.

But Martins Creek Action Group spokesperson James Ashton said the proposal was still "a massive project surrounded by residents".

"They've added some token concessions, but they don't really change the significance of the impacts," he said.

He highlighted the proposed new road is planned to be built "by the end of year four" and there is no bypass proposed for Paterson.

Mr Ashton said the group visited several quarries in the Southern Highlands which either transported 100 per cent of material by rail, or built roads to completely bypass residential areas.

"Which costs more, but they do that to co-exist," he said. "We understand the importance of construction materials for runway upgrades, freeways. But they haven't made any offers of significant infrastructure that we've seen in the Southern Highlands to ameliorate those impacts."

"The committee's official position is if Daracon sees the need to increase the scale of operation they should be required to implement mitigations."

The plans are expected to go on public exhibition this month.

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