The approval has allowed mining of extra coal deposits near the southeast corner of Wambo, which will create jobs for 227 underground workers along with protection of the Creek channel.
According to independent experts, that the proposal will not put the Creek channel into any sort of risk as it complies with the rules around groundwater protection.
NSW Department of Planning and Environment spokesperson said: "We’ve made changes to the proposal and applied tough rules to control the impact of subsidence on groundwater and the environment.
"One of the main changes we’ve imposed reduces the size of the new underground mining area by almost 250 metres, so it avoids going underneath Wambo Creek channel.
"While this expansion means less coal can be mined than originally proposed, we believe it is the right trade-off to properly manage subsidence risk."
The spokesperson added: "Without opening up the new underground area, substantial layoffs would have been likely.
"The approval does not alter the existing mining methods, production rates or the size of the surface mining area."
