While the project was initially designed to shore up a supply of low-cost thermal coal for the state’s electricity needs, the NSW government has since flagged selling or leasing the project if it is approved.

Located near Mudgee, the open cut project is targeting 220 million tonnes of thermal coal production over a 27-year mine life.

Last week NSW Planning and Infrastructure executive director Chris Wilson said there were no environmental or social reasons that would prevent the project from advancing.

Various project modifications from the NSW government-owned Cobbora Holding Company have already reduced the number of open pits.

The department additionally recommended that CHC protect a minimum of 8827 hectares for conservation.

It also wants CHC to spend $500,000 to help recover threatened bats and relocate threatened tree species, plus formulate a suitable rehabilitation strategy.

Wilson summarised the potential state benefits on offer.

“If approved, the project would create more than 1100 construction and operational jobs in the Central West and provide a secure supply of thermal coal for NSW power stations for decades,” he said.

“A cost benefit analysis calculated the project would have a net benefit to Australia in the order of $1.9 to 2.1 billion, including more than $400 million in royalties to the NSW government during the mine’s lifetime.”

A comprehensive water management plan will also be required before mining can take place.