Chief executive of the Australian Coal Association, Dr Nikki Williams, said the independent Hawke Review considered the use of a water trigger under the EPBC Act and ruled it out. The government subsequently set up an independent scientific committee to advise on water impacts of mining projects to negate the need for an additional trigger.

Dr Williams said the federal government had suddenly disregarded the recommendations of its own Hawke Review.

“In only the last 24 hours we have more hard evidence of job cuts in the coal sector, demonstrating just how difficult things have become,” she said.

"The Prime Minister says she stands for Australian jobs. Tens of thousands of people are employed in the coal industry, most of them in regional Australia.

“The government seems blind to the fact that increasing the regulatory burden creates extra costs for companies, which deters investment and puts jobs growth at risk.”

According to the Australian Bureau of Statistics, mining accounts for just 4% of water consumption by industries and households in Australia, compared with 5% for manufacturing, 13% for households and 54% for agriculture.

Dr Williams said less than a year ago the federal government announced a plan to eliminate green tape and duplication between federal and state environmental assessments.

“Less than six months ago the green movement scared that reform off. Now we are faced with more regulation,” she said. “The government appears to be running away from reform.”