The latest approval, subject to strict conditions, comes after the project is recommended for approval by the New South Wales (NSW) Planning Assessment Commission (PAC) in September.
PAC ‘s review found that the project could be approved without significant impacts to the agricultural productivity of the Liverpool Plains.
NSW Department of Planning and Environment spokesperson said that the company has carried out a groundwater modelling, which was reviewed by an independent water expert.
"The project is on higher ground above the black soil plains and extensive groundwater modelling has confirmed there would not be any significant impacts on aquifers or agricultural production."
The department also recommended certain conditions with regard to noise, blasting, air quality and biodiversity, which will issues raised by the PAC’s review.
The final decision on the project will now be taken by the PAC.
If the project is approved, it is expected to produce ten million tons of coal each year and support the region with 400 jobs whilecontributing $1.5bn to the state’s economy. It is located 25km south-east of the township of Gunnedah.
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