The report released on Thursday contained a number of significant recommendations, including compensation payments to the Bulga villagers or even relocation of the village and PAC requested information on a variety of issues before final approval is given.

Of note, is the call by PAC for a study to be undertaken by NSW Government, as a priority, to establish a policy on final voids for future mining projects and mine expansion project.

Commenting on the Warkworth final void that covers more than 900 hectares and is 300 metres in depth, PAC said the proposed void was unacceptable and that opportunities exist to reduce its size.

The Warkworth mine expansion has been mired in controversy since it was first proposed in 2010 and this was acknowledged by the PAC in their report.

“It is aware of the significant history of the project particularly in relation to the 2003 approval and Deed of Agreement and the Land and Environment Court judgement(2013)  on the previous Warkworth Extension Project,” the reports states.

“It also notes changes to government policy and legislation in relation to mining assessments and biodiversity offsetting policy that have occurred since refusal of the previous application by the Land and Environment Court.”

PAC also states the current project has the same footprint as the previously rejected mining proposal.

The current project will extract 18 million tonnes of ROM coal each year for a period of 21 years.

Also under consideration by the same PAC was the far smaller Mount Thorley Continuation Project and it too was given the same “conditional” approval at Warkworth.

Rio Tinto welcomed a recommendation by PAC that approval can be given to continue mining at Mount Thorley Warkworth, subject to strict environmental conditions.

“This is a very encouraging outcome and a vital step towards securing a strong future for Mount Thorley Warkworth mine, which provides work for 1300 people and supports hundreds of Hunter Valley businesses and community groups,” general manager Mark Rodgers said.

“We will need to thoroughly review the PAC’s report, to understand what this means for Mount Thorley Warkworth.

“I would like to thank the more than 2000 people and businesses who have made submissions supporting a strong future for Mount Thorley Warkworth.

“We will be paying particular attention to the PAC’s findings regarding the community of Bulga and we have already been acting on one of its key recommendations, by offering voluntary acquisition to those residents who were granted acquisition rights under the Warkworth Extension 2012 planning approval.

“We are committed to working with community members to ensure there is a strong future for the village.

“While the PAC’s recommendation is a positive step for Mount Thorley Warkworth, it is absolutely critical that a final decision is now made as quickly as possible.

“We are reaching the point where the shape of our existing Development Consent footprint means the area we can mine in will narrow over coming months, making it increasingly difficult to maintain existing production and employment levels.”

Meanwhile, out at Bulga, the first reaction on the PAC report from the residents was one of utter disappointment, having twice had the mine project rejected in court to now see it back and virtually approved.

Bulga Milbrodale Progression Association spokesman John Krey said many of those residents who have endured years of anguish over the mine’s expansion plans have said enough is enough – “we want out”.

“They can’t believe what has happened to them and the complete failure of the planning system in this state,” he said.

But, Mr Krey wanted people to know that the “party wasn’t over yet” as the mining projects had yet to get their final tick of approval.

“We must keep working to achieve the best outcome for not only our community but the entire region as it economic and the community’s physical health is at risk from open cut mining,” he said.

Mr Krey also wanted Rio Tinto to please consider going underground to protect the village, the environment and mine without having a final void.