A polluting gold mine in outback NSW has been told it must fall into line with environmental regulations or face having its operations suspended by the state's environmental watchdog.
Tests from the Cadia gold mine, about half an hour south of the regional centre of Orange, show its main vent is releasing an unacceptable level of dust, the NSW Environment Protection Authority says.
The gold mine owned by Newcrest was continuing to fall well short of its legal obligations to meet clean air standards, EPA chief executive officer Tony Chappel said on Wednesday.
"We require the mine to take all necessary steps to ensure dust emissions are significantly reduced and this may include a reduction in production," Mr Chappel said.
"If Newcrest cannot show its subsidiary is taking immediate action to comply, the EPA will take appropriate action which could include suspension of the licence, seeking court orders or, issuing further directions.
"We know this is strong action, but we will not shy away from doing what we must to prioritise human health and the environment."
Local farmers who formed the Cadia Community Sustainability Network previously told AAP the dust was a hazard to them and their livestock.
"The mine has continued to operate despite multiple dust exceedances which have resulted in several penalties from the EPA," a spokeswoman for the network said.
The EPA has begun testing the quality of locals' rainwater tanks and will soon monitor the ambient air quality.
"We will continue taking all necessary steps to ensure residents are confident their health is being protected," Mr Chappel said.
A number of conditions have been placed on Cadia's operating licence, including regular monitoring of the mine's vent and monthly reports on dust discharge.
Lead dust fingerprinting research will also be required along with an analysis of dust impacts and independent health analysis and an updated air quality impact assessment.
The amount of dust created underground needs to be managed and dust suppression reports must be provided regularly to monitor their effectiveness.
AAP has contacted Newcrest for comment.
