The proposed exploration area for the opencut mine includes a section of Jerrys Plains, a rural village 247km northwest of Sydney.
Councillor Paul Nichols raised the issue at a council meeting on Monday, saying the community of Jerrys Plains needed to be protected from the mine.
“While Singleton Council acknowledges its close association with the mining industry and the importance of coal mining, it also acknowledges the importance of all rural villages within the Singleton Local Government Area," he said.
The council has said it will argue to the Department of Primary Industries Mineral Resources section and the Department of Planning that all rural villages should be protected from opencut and underground mines by a buffer zone.
It also said mining companies should engage in "a more open and realistic consultation process" with communities and be compelled to consult with relevant community consultative committees before advertising proposed exploration.
Singleton Council said letters would be sent to the DPI and DoP, outlining council and community concerns, prior to approval of the licence.