Hume Coal has unveiled a plan to develop an underground coal mine in the Southern Highlands, Australia.

Hume Coal project director Greig Duncan said that the project plan was focused primarily on addressing the potential concerns of local residents including water, subsidence as well as visual amenity.

"The project will not involve coal seam gas, open cut or longwall mining. It will have no impact on town water or surface water such as dams."

A new mining system has been designed that will have no long-term impact on the groundwater system. It will be used to extract coal from the Wongawilli coal seam in the Sutton Forest region.

According to the company, the project will mine only 35% of coal from the reserves that are available at present.

The mine is expected to generate 400 jobs at the time of construction.

As part of its initial step in the development proposal, Hume Coal plans to submit a preliminary environmental assessment and application to the NSW Department of Planning and Environment soon.