In 2010 Idemitsu said the open cut project, near its Muswellbrook operation, could produce more than 7 million tonnes per annum of thermal coal.

While the project is not yet listed on the NSW planning department’s active projects list, MCC has filed project-related documentation to the state’s 2013-created Mining and Petroleum Gateway Panel, according to ABC News.

This panel is designed to assess potential agricultural and water impacts before a development application is lodged.

MCC has also approached the Upper Hunter Shire Council, which is reconsidering a policy on banning new open cut coal mining developments.

Deputy mayor Wayne Bedggood said the talks with the coal company had begun positively.

“They couldn't give us a lot of detail about the actual mine plan, but they have promised to release that to us hopefully in mid-December when it goes before the gateway process," he told the ABC.

"They're going to come back to us to council and have a chat to us and give us a lot more detail, at which time we'll be able to think about the impacts that it'll have on the shire because we'll know exactly where the pits are proposed."

The West Muswellbrook project is not yet listed on the Mining and Petroleum Gateway Panel website.