The company has existing state government consent for its proposed partial extraction mining area, but needs federal government approval for mining the Katoomba coal seam under some areas containing “temperate highland peat swamps on sandstone”.

This particular terrain and ecology type was listed as an endangered ecological community under the Environment Protection and Biodiversity Conservation Act in 2005.

Notably, Centennial does not expect more than 10 centimetres of surface subsidence in these areas from its bord and pillar extraction activity and has previously achieved these results from mining within the Clarence lease.

The proposed extraction area covers around 2852 hectares with most of it underneath the Newnes State Forest.

Production is targeting up to 3 million tonnes per annum under the extension project and federal government approval would allow for mining up to December 2026.

The mine is located 15km northeast of Lithgow and is 85% owned by Centennial with SK Energy Australia owning 15%.

Centennial is a subsidiary of Thai energy giant Banpu.