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Expansion of Whitehaven's 'gassy' Narrabri coal mine conditionally approved by planning authorities

Whitehaven Coal's Narrabri Underground mine will be able to operate until 2044. (Supplied: Whitehaven Coal)

NSW planning authorities have approved the expansion of a coal mine in north-west NSW that has been described as one of the country's most "gassy".

Whitehaven Coal applied to extend the life of its Narrabri Underground mine for 13 years to 2044.

After a two-day public hearing in February, the Independent Planning Commission [IPC] panel, headed by the former chief scientist of NSW Mary O'Kane, today granted the project conditional approval.

"The commission finds that, on balance, the application is not inconsistent with [ecologically sustainable development] principles," the panel's statement read.

"The project would achieve an appropriate balance between relevant environmental, economic, and social considerations."

The approval includes conditions designed to limit the project's direct greenhouse gas emissions, including the development of a Scope 1 Emissions Minimisation Plan.

Approval 'disgraceful'

The decision comes a day after Whitehaven was handed a fine of more than $150,000 in the Land and Environment Court for polluting a creek near its Maules Creek mine in 2020.

Boggabri farmer Sally Hunter criticised the timing of the decision, and said locals had little confidence the company would meet the conditions the IPC had imposed.

Boggabri farmer Sally Hunter is a long-time opponent of the expanding coal industry in north-west NSW. (ABC News: Elena De Bruijne )

Whitehaven Coal has previously breached conditions at its other mines in the region, including unlawfully taking more than 1 billion litres of water during the drought.

But the IPC cannot legally consider the previous actions of a proponent when weighing up an application.

Environmental advocacy organisation Market Forces has also criticised the approval, and called on the company's previous lenders, including NAB and Westpac, to rule out further funding.

Campaigner Christian Slattery said the project was "in stark contrast to the conclusions of climate scientists ... that no new coal mines can proceed if we want to limit global warming to 1.5C."

Supporters welcome job security

Supporters of the extension argued it would improve job security for the Narrabri region.

Narrabri Chamber of Commerce chair Russell Stewart welcomed the diversification of the region's economy by the resources sector.

"You need things like mines to go ahead for housing to be built, for hospitals to be funded. It's how it works," he said.

Mr Stewart said the extension had been a contentious issue, but he questioned how many locals opposed the development.

"It's always the same names you see each meeting," he said.

Mine is about livelihoods: Whitehaven

Whitehaven's Managing Director and CEO, Paul Flynn, said the approval was a win for the mine's employees.

"Big investments like Narrabri Stage 3 are about lives and livelihoods and it's no surprise the majority of submissions from the local area and wider region supported the proposal, as the IPC acknowledged," he said.

"While today is a great result for Whitehaven, it's fantastic for the Narrabri region too – last financial year Whitehaven spent nearly $50 million with around 81 suppliers in the Narrabri LGA."

Whitehaven said in a statement the IPC's environmental conditions "align" with its own intention to reduce emissions at the mine.

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