Australia's NSW government toughens policy on mining approvals

An Australian government will make it harder for major mining projects to gain approval, removing a clause in planning policy that makes the significance of a resource the principal consideration in approving new mines.

A draft amendment released to local media on Tuesday instead gives greater weight to the environmental and social impacts of a mining development in the Australian state of New South Wales (NSW) .

"This proposed amendment reflects the importance of balance in assessing the likely impacts of mining developments," NSW Minister for Planning Rob Stokes said.

The amendment has been heralded by environmental and community groups.

Australian miners say the move is political which will cause uncertainty and further harm already struggling mining communities in regional Australia.

"Getting the balance right is important, but you can't have viable communities and a clean environment without a strong economy," NSW Minerals Council chief Stephen Galilee said.

Galilee called on the NSW government to ensure the changes to the State Environmental Planning Policy are not retrospective.

As NSW is one of Australia's largest coal producers, new coal mines and mine expansions currently under the approval processes are likely to be affected, including new mine in regional NSW and Rio Tinto's controversial coalmine expansion in the Hunter Valley.

The Rio Tinto proposal to extend the life of its mine by a further 21 years involves the creation of an open cut super pit, which will force residents to abandon a nearby town.

Activists against the expansion have said the proposed amendment should be enough for the NSW planning and assessment commission to reject the proposal.

However, Rio Tinto said the change did not affect the "clear and compelling case" for its proposed expansion.

"An approval will allow this mine to continue providing jobs for 1,300 people and spending hundreds of millions of dollars each year with other businesses across NSW," Rio Tinto Coal Australia managing director Chris Salisbury said in a statement. Endi