Some $11 million will be spent to rehabilitate the 58 hectare minesite which closed in 1972. Remnant coal waste will first be removed and the land will then be rehabilitated and revegetated with native species over two years, generating 30 jobs in the area.
The NSW Carr Government this week transferred the lease from Coal and Allied Operations to East Maitland-based Hunter Enviro-Mining.
The recovery process will separate coal reject from waste material, with more than one million tonnes to be removed during the project. The coal will then be processed through an on-site washery to recover any remaining saleable coal.
The project is expected to deliver over 300,000 tonnes of coal which will be exported through Newcastle Harbour for overseas power stations. The remaining coal would be used as roadbase materials and burnt tailings.
The lease renewal and transfer comes after almost four years of community opposition to the plan.
Minister for Mineral Resources and Cessnock MP Kerry Hickey said the project was all about improving the environment.
"The development consent and mining lease conditions mean stringent controls have been imposed on the operation for the protection of the environment," Hickey said.
Hebburn No.2 was one of 15 mines located around the outskirts of Kurri Kurri, which commenced operation in 1921 and by 1924, employed around 248 miners. The mine was originally developed by hand mining and grunching, becoming more mechanised in 1962 with the introduction of a Joy 1 Continuous Miner.