The decision, subject to final approval by the state government, means the company can increase its output of coal to a maximum of 460,000 tonnes a year, some of which would be for export.

The mine employs 40 people and there were concerns it mine would close if approval to expand was not granted.

Cr Graham McLaughlin, who is a Boral employee, said he was glad “common sense prevailed” over the decision.

“If the mine expansion was rejected, the viability of the cement plant and 170 jobs were in the balance,” he said.

However, there were also concerns by Wingecarribee Council and a number of government offices that the mine was not meeting modern environmental regulations.

In its report, the PAC alluded to a lack of appropriate data on which to make a proper assessment of water impacts, which was acknowledged by Boral.

“This situation appears to arise from reliance on the long history of a mine with no obvious serious incidents and a level of operational and regulatory complacency that is out of step with current requirements,” the report said.

Rather than address these concerns before granting approval, the PAC chose to construct a framework to ensure collection of required data.

It also said this method was “poor practice” and that the company was “likely to come under increased scrutiny in the future.

Boral was required to widen the road through Medway village to 10m within 12 months and limit the speed of trucks through the village to 30km/h.

It must pay a road maintenance levy for Medway Rd and Taylor Ave, repair existing damage to roads, and widen the 80km/h section of Medway Rd within 24 months.

Measures to reduce noise and dust from the mine must also be introduced and haulage of coal on Saturdays will begin at 7am, rather than 6am.

Wingecarribee Council recently withdrew its support for the application after finding heavy metals were being discharged from the mine into Wingecarribee River that were above accepted levels.

The council was then criticised for its lack of due process and for not contacting Boral for a response. Three councillors (Duncan Gair, David Stranger and Paul Tuddenham) had put in a rescission motion.

Cr Jim Clark said the company had a proven record of not being concerned with complying with environment regulations, alluding to an incident with air emissions about sevn-eight years ago where Boral was found to have “fudged” figures.

Medway resident Annie Hird said residents did not want the mine closed, they just wanted to live in a safe community and for the company to comply with all regulations and conditions.

Meanwhile, anti-mine activist Peter Martin raised the issue with broadcaster Alan Jones on Wednesday.

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