Chinese coal giant Shenhua plans to mine 10 million tonnes per annum of coal over 30 years using open cut mining methods near Breeza and adjacent to some of the most productive agricultural soils in the state.

The PAC said Shenhua sought expert advice and modified the plan to provide “additional protection to the [area's] critical groundwater resource”

Planning Minister Pru Goward defended the PAC decision stating that the mine had been approved after “to comprehensive, transparent, and scientifically rigorous assessments" by the independent commission.

A final decision now rests with the federal government under the biodiversity act.

“The project is a real boost for the north-west region, delivering a range of major economic benefits.”

The news is being hailed as a rare victory for coal mining proponents in NSW who have seen major project expansions turned down in the last 12 months, including Anglo American’s Drayton South project and Rio Tinto’s Mt Thorley Warkworth complex expansion.

Late last year Premier Mike Baird pledged to the mining industry that he would be seeking to decrease the lead up time for project s and give greater weight to their economic contribution to regional economies.

“This decision reflects positive long-term prospects for the industry and will create hundreds of new jobs for the Gunnedah region," NSW Minerals Council CEO Stephen Galilee reportedly told the Sydney Morning Herald.

“The Watermark Project has been subjected to unprecedented levels of scrutiny by the Planning Assessment Commission and its approval comes as a welcome relief for the industry.”

The Shenhua coal mine is being fiercely opposed by the local farming community, which had previously turned out in large numbers to protest against the proposal, according to Lock the Gate national coordinator Phil Laird.

“This is the final straw for the credibility of New South Wales mining law. This mine will jeopardise the rich farmlands on the Breeza Plain, and the productive Namoi Alluvial Aquifer, upon which our food-growing farming communities depend,” Laird said.

“The abject failure of this state to make laws that protect farmland and important groundwater from mining is now on ugly display: the approval of this mine is a damning indictment on the Baird government’s failure to fulfil its promise to protect land and water from coal mining.

“Already, hundreds of properties in the Liverpool Plains, Gunnedah and Narrabri Shire are owned by coal mining companies, including nearly 20,000ha owned by Shenhua. With this approval, Shenhua may be swallow up even more properties, including productive black soils farms that should be feeding the nation.”

NSW Farmers’ Federation president Fiona Simson told the Land newspaper the approval highlights a failure of agricultural policy.

“Mining has been approved in the heart of our best agricultural land,” she said.

“If it wasn’t so serious it would be laughable in terms of the repercussions.

“We were guaranteed by government that agricultural land and significant water resources would be protected and that is the biggest disappointment to me.

“The Strategic Regional Land Use Plan was designed to protect the best agricultural land in the State and it took significant money to do the mapping of the land.

“All coal resources in NSW are deemed State significant – but the fact that there is no state agricultural land is quite telling.

“We are strongly opposed to the mine because our members believe the Liverpool Plains are unique.

“The agricultural values of soil and water are unique and should be protected.”

“In this decision, the PAC stressed several times importance of the black soil plains, but it allowed the mine go within 150m and deemed that a suitable buffer.

“The people writing the PAC report and their advisers obviously have very little understanding of agriculture.”