The NSW Land and Environment Court (LAEC) had earlier rejected the Warkworth mine extension over allegations that environmental and social costs could outweigh economic benefits.

Rio Tinto approached the Supreme Court; however, the company had to take an alternative as the court upheld LAEC’s decision.

In its latest proposal, Rio Tinto has made certain commitments and measures, including providing over 1800 hectares of land towards a National Park in the Upper Hunter and $4m over five years towards a Warkworth Sands regeneration project.

It also seeks to complete noise attenuation of all diesel-powered mining equipment by the end of 2016.

Rio Tinto Coal Australia managing director Chris Salisbury said: "It is critical for the future of Mount Thorley Warkworth mine, and the 1300 people who work there, that these planning approvals are processed without further delay."

"These planning applications draw on technical studies that have been conducted this year into impacts and mitigation measures across a range of areas including noise, air quality and ecology, as well as consultation with community members," Salisbury said.

"The fact that we’ve had a delay to getting our long term approvals has already cost us one million tonnes of production this year."