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Wongawilli mine expansion raises concerns for Sydney water catchment's Avon Dam

The Avon Dam is the second largest dam in the Sydney water catchment area, after Warragamba. (Supplied: Sydney Water)

Government approval to build a seven-kilometre-long access road under Sydney Water's second largest water storage dam has drawn condemnation from environment groups.

The New South Wales Department of Planning and Environment's decision will see Wollongong Coal build a road under the Avon Reservoir to reach a ventilation shaft.

The decision signals the restarting of Wongawilli coal mine, which was put into care and maintenance in 2019.

Protect Our Water Alliance's Rada Germanos said the group was against the expansion of mining in the protected areas of the Sydney water catchment.

"Digging a 7km tunnel under the Avon Reservoir, which supplies Avon Dam, is really concerning in terms of water security for the region," she said.

"We could potentially compromise the water supply to 300,000 people in the Illawarra region."

Rada Germanos says the plan puts people in Illawarra at risk. (Supplied: Rada Germanos)

Ms Germanos said the approval for Wollongong Coal would pave the way for a 30-year expansion of the mine, but the details were unavailable.

"[Wollongong Coal] haven't actually submitted their application for a mining extension yet, so we don't know the details of the mining they hope to undertake for another 30 years," she said.

Mine put into care

In 2014, a $90-million piece of equipment was accidentally buried in the mine.

In February 2019, the mine was issued with a notice ordering mining activities to cease to ensure adequate control and risk measures were in place.

Ann Brown sits on the Community Consultative Committee for the Wongawilli mine and is a member of the Illawarra Branch of the National Parks Association.

The area covered by the mine plan takes in much of the Avon Dam west of Wollongong. (Supplied: Department of Planning and Environment)

She said the NSW government should cancel the mining lease due to safety, financial and environmental concerns.

"The mining company has a lease for exploration mining and unless the government withdraws that lease – which is what it should do – they have to follow the process," Mrs Brown said.

"It's providing drinking water for five million people in total at the moment in the catchment — and the population is increasing and we have climate change.

"We should not be opening any new coal mines, it's as simple as that."

Jobs and royalties

A spokesperson for the NSW Department of Planning and Environment said the modification would provide 150 jobs over the next five years while raising $3.7m in royalties.

"This decision follows a rigorous assessment by the department and included advice from WaterNSW and Dams Safety NSW, as well as community feedback," they said.

The spokesperson said Wollongong Coal was also required to prepare a safety management plan for the dam in consultation both agencies.

It was also required to prepare a sustainability and emissions strategy, including the requirement to reduce or offset emissions by four per cent each year over the extended life of the project.

Wollongong Coal was approached for comment.

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