The NSW Planning Assessment Commission has refused consent for a coal mine planned for Gloucester, potentially culling a second major mining venture near the mid-north coast town in less than two years.
The commission found the economic benefits of the Rocky Hill open-cut coal project sought by Gloucester Resources Ltd would be outweighed "by the detriment to the quality of life for residents near the mine site".
"In balancing both the benefits and adverse impacts, the commission finds that the project is not in the public interest," it said in a statement released on Friday.
The PAC's determination was welcomed by Groundswell Gloucester, a group that helped lead the successful opposition to a proposed coal seam gasfield that was dropped by AGL almost two years ago.
Friday's decision was "great news for the long-suffering Gloucester community which has been fighting this flawed proposal for many years", Di Montague, a Groundswell campaigner, said.
"It was always an absurd idea to dig a 200-metre deep dirty coal mine less than 1 kilometre from family homes and the PAC decision confirms this."
Fairfax Media sought comment from Gloucester Resources.
A PAC rejection does not always result in a proponent giving up. The Drayton South coal mine has had four rejections, with the developer responding by submitting a modified proposal.
Groundswell Gloucester promised "continuing relentless opposition" to plans to build a coal mine near the town.
"We call upon the state government to now ensure that this is the end of the road for this absurd mine proposal by buying back GRL's licence," Ms Montague said.
The miner had proposed to produce as much as 2 million tonnes from three open-cut pits for as long as 21 years.
The commission found the mine would disturb 497 hectares of agricultural land, a development that was not "sympathetic to the Gloucester Valley's character".
