MTW is an integrated operation of two adjacent open cut mines that are 15km south-west of Singleton in the Hunter Valley region of NSW.

The mine’s expansion has been in limbo since the NSW Land and Environment Court ruled in 2013 that it would threaten endangered ecological areas and adversely affect residents of the nearby town of Bulga, the Wall Street Journal reported.

The case was then taken to the NSW Court of Appeal, which refused to overturn the decision.

The company has agreed to offer 1,800ha of land for a national park, A$4m ($3.7m) towards a regeneration program for Warkworth Sands Woodland and money for training local youth.

Coal & Allied managing director Chris Salisbury said that the company remains committed to securing new approvals to provide a long-term future for Mount Thorley Warkworth mine and the jobs of its 1,300 workers.

"Our current approvals will only allow Mount Thorley Warkworth to maintain existing production and employment levels until the end of 2015. It is essential we secure longer-term approvals before then, to ensure the mine remains economically viable," Salisbury added.

The company’s new proposals being considered include a range of upfront measures that go above and beyond the existing comprehensive program to manage impacts from Mount Thorley Warkworth mine.