Next Step in the Planning process:

DPHI have indicated they will now await an amendment report from Yancoal before they decide whether to accept or reject a revision.

The Yancoal Moolarben OC3 open-cut expansion, adjacent to Munghorn Gap Nature Reserve, had been referred to the NSW Independent Planning Commission (IPC) for determination. The public hearing in Mudgee on Tuesday 10th February has been postponed. This postponement severely disrupts the community consultation process, further destroying community trust in the NSW planning process for large coal mine expansions. Yancoal have had this EL since 2007 and should have made these amendments earlier. The proposed amendments are relatively  minor and cosmetic and will do nothing to reduce negative impacts from this project.

We’re calling on the Department of Planning to reject this proposed amendment and continue with the community consultation process that was already underway.

In the meantime, don’t stop!

We are currently holding a series of community briefing and action sessions — both in-person and online — to support locals to engage effectively in the IPC process. Details of upcoming sessions and hearing information will be updated on this page. Please subscribe to our socials and email updates to stay informed.

MDEG Submissions Objecting to Open Cut 3 expansion:

• Federal EPBC Act Submission
• State Submission

Yancoal has responded to questions from government agencies, read more by going to the project planning page and referring to 'additional information' drop down.

In March 2024 Yancoal released a response to submission report and lodged a project amendment. While the size of the proposed open cut extension was slightly reduced at that time, significant impacts on bushland, threatened species, water and landscape remained. There is still no justification to expand the Yancoal Moolarben Mine further into the Moolarben Valley and closer to the Munghorn Gap Nature Reserve. See the media release from MDEG and MCA here.

There is no reason for the Yancoal Moolarben Mine to continue expanding. 

The impacts of the current approved mine on biodiversity, water and the community are already enormous. While the proposed expansion has been decreased in size, there is no justification to produce a further 30 million tonnes of coal within the life of the approved mine to 2038. Expanding into the southern end of the Moolarben Valley is a step too far. The bushland contains critically endangered species and provides food sources for Koala, Regent Honeyeater and other native animals threatened with extinction.

No amount of biodiversity offsets can replace the existing environment.

Yancoal is still proposing to clear 113ha of woodland. All of the bush they will clear is koala habitat and koalas are recorded on site, including in the middle of one of the proposed pits and breeding is occurring in the area. Of koalas, the BDAR says: "Given that the habitat within the Study Area may be considered as critical to the survival of the local population, and that the Project may result in increased mortality/physiological stress of the species through fragmentation of the landscape, stress and vehicle strike, it is considered that the Project has the potential to lead to a long-term decrease in the size of the population" and "The Project would result in the removal of 113.02 ha of habitat for the Koala. As such, the Project is considered likely to affect habitat that has the potential to be critical to the survival of the species."

Yancoal is still planning to clear 80ha of Regent Honeyeater habitat.

This would increase negative effects along the boundary with Munghorn Gap Nature Reserve.

Over the life of the OC3 mine extension an additional 72 million tonnes of GHG emissions will be produced from the 30 million tonnes of coal produced by the project.

Moolarben last year reported 181,893 tonnes GHG, so this project would be equivalent to roughly a quarter of the mine's annual emissions.

Claims that this expansion is needed for jobs do not stand up to scrutiny. Coal mines in the Mudgee region have carried vacancies for years, and Moolarben sits within the Central West Orana Renewable Energy Zone, where government investment is focused on accelerating clean energy and long-term employment. Expanding coal mining in this region runs directly counter to that transition.

Other key notes:

• Planning have lodged a draft Development Consent document 'should the IPC approve the extension’
• The DPHI Assessment Report referred to the IPC reveals that there has been no agreement between Yancoal and the government agencies which have made numerous suggested improvements for biodiversity outcomes
• There has been ample opportunity for Yancoal to improve biodiversity outcomes by acting on agency advice provided to them during the planning process to date.
• The Mine Plan retains a minimal 100 metre buffer between mining operations and Munghorn Gap Nature Reserve (MGNR). NSW NPWS recommended this buffer be increased to 500 metres as a precautionary measure to ensure protection of the cultural and natural values of the nature reserve and reduce cumulative and environmental impacts including blasting, vibration, light, dust and noise pollution, public safety, amenity, and interface management issues such as weed and pest animal incursion.
• There is no mechanism proposed in the habitat enhancement plan to provide for long term protection of the habitat enhancement area.
• Low confidence in groundwater modelling: The OC3 Expansion assessment relies heavily on MCO’s groundwater model, which the Independent Expert Panel on Mining (IEAPM 2025), the Independent Expert Scientific Committee (IESC), and the NPWS all consider inadequate for local-scale prediction. Major issues include poor hydrogeological characterisation, inadequate monitoring and baseline data, unexplained discrepancies between measured and modelled data and insufficient quantification of drawdown in alluvium and impacts on baseflow.

Handy Links:

• STATEMENT - Public hearing on Moolarben Coal postponed
• DPHI Request for Amendment
• OC3 Planning Page
• Mudgee Guardian: 'Koala Rally'
• Mudgee Guardian: 'Death by Open Cut'
• Response To Submission Report
• MDEG Media Release
• Lock The Gate Media Release
• ABC News Report
• ABC Listen
• Yancoal's Response to Submission
• Project Amendments

NSW Biodiversity Conservation and Science (BCS) Group Recommendations:

The NSW Biodiversity Conservation and Science (BCS) Group recommended the Moolarben Coal Mine significantly reduce impacts of the proposed development on the Munghorn Gap Nature Reserve (MGNR) requiring a 500 metre buffer from the nature reserve to reduce the direct loss of habitat and blasting vibration impacts.

The BCS highlighted the exceptionally high biodiversity value of the area with 22 threatened fauna species (including koalas), 3 threatened flora species and 2 Threatened Ecological Communities.

They advised MCO’s Biodiversity and Development Assessment Report (BDAR) did not address all the BCS recommendations or provide sufficient justification and evidence in the report.

The proposed mine development:

1. Is likely to result in serious and irreversible impacts (SAII) on threatened fauna and ecological communities.
   • Regent Honey-eater
   • Broad-headed Snake
   • Microbats (eastern cave and large-eared pied bats)
   • White Box-Yellow Box-Blakely’s Red Gum Grassy Box Woodland and Derived Native Grassland (loss of 493.12 Ha)
2. Contains insufficient measures to avoid and minimise impacts on koala and squirrel glider habitat, foraging resources and restricting movement from east to west across the valley (i.e. clearing woodland remnants adjacent to the Reserve and within the riparian area for infrastructure should be avoided and minimised). The project would impact 113.02 hectares of occupied Koala and Squirrel Glider habitat. This Koala population has survived recent and historical drought and bushfires and suggests that the area could be critical to the survival of the species.
3. Noise and blasting impacts on Munghorn Gap Nature Reserve were poorly assessed and not included in the modelling report. Blasting and vibration limits are not sufficient to prevent damage to rocky habitat. Considering sensitive receivers (wildlife, bushwalkers, campers and bird watchers at Honeyeater Flat) noise impacts on MGNR requires limits and monitoring.
4. The extent of Box Gum Woodland CEEC is likely underestimated. It is unclear what data has informed the delineation of Plant Community Types and vegetation zones within the development footprint. A Site based floristic assessment is required to clearly and comprehensively explain how it has been assessed in accordance with BAM (Biodiversity Assessment Method).
5. The nature, extent and duration of short-term and long-term impacts on Groundwater Dependent Ecosystems and threatened entities of groundwater drawdown (2 - 6m or greater) for up to 25yrs post mining and ‘mounding’ have not been adequately assessed. The Munghorn Gap Nature Reserve is not depth restricted thus sections of the Ulan Seam and the Permian layers are part of the reserve. Further monitoring of these layers is required to inform the assessment of impacts, to ensure zero drawdown impacts.
6. Insufficient information has been provided on the proposed “Habitat Enhancement Area”

Further Details:

Peak Particle Velocity too high. Blasting risks damage to rocky habitat & Munghorn Gap Nature Reserve. To ensure precautionary principle requires upper vibration limit of 15mm/s PPV (Peak Particle Velocity)

Fauna survey insufficient. Presence or absence of giant burrowing frog and the red-crowned toadlet has not been assessed. Survey effort for both the eastern pygmy possum and the brush-tailed rock wallaby is not sufficient to confirm absence of these species within the development footprint.

Submissions Report does not outline the proposed Target Action Response Plan (TARP)– NPWS would require consultation and notification of impacts on NPWS estate.

Moolarben Coal Complex Bushfire Management Plan not updated in response to changes to operations and the site as part of this project