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The plan, which is receiving submissions from the public, also seeks to ensure the region makes appropriate use of resources, including coal.
"The Dendrobium, Wongawilli, Russell Vale and Metropolitan collieries are located near current and future residential developments," the plan states.
"Balancing the ability of these mines to continue to operate, and any future extraction of resources, with the expectations of current and future residents remains an ongoing challenge."
The plan states that coal mining in the region is largely concentrated in the western and northern parts of the Wollongong Local Government Area.
There are five colliery holdings - three with planning approvals beyond 2030.
"The region lies partly within the Southern Coalfield, which provides the only hard coking coal in NSW," the Plan states.
"This coal is in high demand for steel production around the world. About 16 million tonnes of coal was produced in the Southern Coalfield.
"The state government earned royalties in excess of $71 million from these activities."
