The NSW Environment Protection Authority says it is not aware of any asbestos-contaminated mulch in the Hunter after the state government set up a taskforce to deal with a host of affected sites.
The government announced on Thursday that the taskforce would deliver more staff to the EPA to test mulch and trace the contamination down a "complex" supply chain.
Premier Chris Minns said on Thursday that hundreds of sites across Sydney could be contaminated.
The taskforce will meet for the first time on Friday after bonded asbestos-contaminated mulch was discovered in Sydney schools, parks, a hospital and a supermarket.
The taskforce has identified another seven Sydney schools for testing after "contact tracing" raised concerns about mulch in their grounds.
One site has contained more dangerous friable asbestos which can easily be crumbled or powdered in the hands.
The government has identified western Sydney supplier Greenlife Resource Management as a common link in the contamination, though the company has said it is not responsible and tests on mulch in its yard have come back negative.
City of Sydney council said this week that the EPA had found its mulch suppliers might have received contaminated mulch.
NSW Asbestos Coordination Committee chair Carolyn Walsh said one supplier had sold mulch to about 30 suppliers who had "now distributed further down the chain".
EPA chief executive Tony Chappel said a "small number" of sites outside Sydney, including a bridge project at Nowra, had been contaminated, but Lower Hunter councils, the Department of Education and the EPA said the problem had not spread to the Hunter.
"We are not aware of any sites in the Hunter that have received contaminated mulch," an EPA spokesperson said.
Newcastle council said most of its mulch came from its tree maintenance program.
"There are strict guidelines about what is accepted into our mulch pile to ensure quality control," a spokesperson said.
"We do not process our mulch and maintain a high-level storage parameter which ensures it is free from pest, disease and debris."
Lake Macquarie City Council said it was confident the risk of contaminated mulch being present in public spaces in the local government area was low.
"We generate most of the mulch we use across the LGA ourselves," a spokesperson said.
"Our city presentation crews visually inspect all mulch prior to application to ensure it meets requirements of our raw mulch protocol.
"We are unaware of any asbestos contamination testing the EPA has done on mulch in Lake Macquarie, nor have we undertaken any ourselves."
Cessnock City Council said it had no relationship with the supplier in question.
Maitland City Council said it controlled the quality of mulch used in its parks and open spaces by using products "sourced from suppliers whose products conform to Australian standards and mulch generated from council's tree maintenance works".
Port Stephens Council said its mulch products were not connected to the contamination issue in Sydney.
The Department of Education said it had no concerns about asbestos-contaminated mulch being supplied to schools in the region.
"The department has undertaken a review of all projects delivered in Hunter schools since January 1, 2023, as part of a larger statewide review and has been provided assurances from contractors that recycled mulch has not been used within schools across the Hunter," a spokesperson said.
Hundreds of schools in NSW, including dozens in the Hunter, are listed on a state asbestos register due to materials used in their construction.
Some have management plans in place while others have works programs to remove contamination.
Mr Chappel said contaminated mulch could have ended up in private homes, though the products in question could not be bought off the shelf at retail stores.
The EPA has launched a criminal investigation into the matter.