The independent inquiry was originally established amid government concern over impacts of mine subsidence on the region's natural features.

Its official recommendations were released last week in its report, Impacts of Underground Coal Mining on Natural Features in the Southern Coalfield Strategic Review.

While the report was lauded by the NSW Minerals Council as an important opportunity for the Southern Coalfield communities and the mining industry to "put the facts on the table", council CEO Dr Nikki Williams said it was important that the "most balanced outcome for community, environment and industry” was achieved.

Williams warned that some of the recommendations had the potential to prejudice some future mining operations in the Southern Coalfield.

The review made a raft of recommendations, many of which relate to identifying risk management zones (RMZs) so potential impacts on significant natural features could be assessed and managed.

It said these zones should be identified by a 40 degree angle from the vertical down to the coal seam or a surface lateral distance of 400m on either side of the feature.

It said RMZs should be applied to all streams of third order and above of the Strahler stream classification.

The review advised project applications should include a minimum of two years of baseline data; identification and assessment of the significance for all natural features located within 600m of the edge of secondary extraction; and better distinction between subsidence effects, impacts and consequences.

It also said a "precautionary approach" should be used in approving applications.

“Due to the extent of current knowledge gaps, a precautionary approach should be applied to the approval of mining which might unacceptably impact highly significant natural features,” the report said.

“The approvals process should require a ‘reverse onus of proof’ from the mining company before any mining is permitted which might unacceptably impact highly significant natural features.

“If such mining is permitted because the risks are deemed acceptable, it should be subject to preparation and approval of a contingency plan to deal with the chance that predicted impacts are exceeded."

It also said Part 3A of the Environmental Planning and Assessment Act 1979 should be the primary approval process.

The report recommended mining which might "unacceptably impact" highly significant natural features should pay an increased security deposit to cover anticipated and potential rehabilitation costs.

On the research side, the report recommended further investigation into impacts of subsidence on both valley infill and headwater swamps; means of remediating stream bed cracking; and prediction of non-conventional subsidence effects – including valley closure and upsidence.

“Whilst the industry will continue to work with the Government and other key stakeholders to develop practical improvements that enhance the management of environmental impacts, the industry will carefully consider and evaluate the details of the report and awaits the Government’s response,” Williams said Friday.

Eight mines, five of which use longwall mining methods, produce 11 million tonnes per annum from the region. The industry directly employs 2500 people, indirectly employs up to 12,000, and produced $A58.7 million in royalties in the last financial year.

The full report can be found here