Federal MPs at the Hunter Valley coalface have called for caution around Andrew Wilkie's claims of widespread fraud in the mining industry, amid fears it could threaten the region's reputation.
The independent Tasmanian MP used parliamentary privilege on Monday to allege coal exporters have been lying about the quality of Australian coal to boost profits and prevent exports being rejected.
More than half of the state's 40 coal mines are in the Hunter region, supporting thousands of local jobs, with roughly 160 million tonnes of coal exported through the Port of Newcastle every year.
Mr Wilkie alleges two coal companies operating in the Hunter — Glencore and Peabody — are implicated among the thousands of internal documents he has been provided from an executive in the industry.
"At the end of the day, they're unfounded allegations made by an MP under parliamentary privilege," Labor's Hunter MP Dan Repacholi, who is a former coal miner, said.
"We take all allegations seriously, as any government should.
"No matter what the industry is, we need to be making sure that nobody is above the law."
Mr Repacholi says his party will wait for a detailed briefing from the Australian Securities and Investment Commission before commenting further.
"I don't think we need to speculate about things that could be and could not be," he said.
"I think we just have to wait to see what the Australian Securities and Investment Commission comes back with and then take it from there."
'It might be true. We don't know'
The New England electorate of former Nationals leader Barnaby Joyce extends throughout parts of the coal-rich Upper Hunter.
"We've got to be really careful we don't destroy our coal industry," he said.
"The Hunter will be exceedingly poorer, and you'll lose thousands of jobs, the value of your houses will be affected and everything else."
Mr Joyce does not agree with Mr Wilkie's calls for a parliamentary inquiry into the fraudulent claims but says they should be scrutinised.
"It might be true; we don't know," he said.
"Just because you made an allegation in parliament, doesn't mean it's the truth.
"Let's see where it goes."
Industry defends coal exports
Minerals Council of Australia chief executive Tania Constable says the country's export coal products "are amongst the best in the world".
She said Australia has supplied reliable coal products for decades that were highly sought after by customers.
Glencore operates open-cut and underground mines in the Upper Hunter and partly owns Wambo Coal.
The company said it noted the allegations made by Mr Wilkie.
"Glencore has not been involved in any investigations or proceedings related to this matter," the company said in a statement.
Wambo's other part-owner Peabody said it strenuously denied Mr Wilkie's claims.
