The PAC approved the extension of time for another five years, a decision which was welcomed by mine boss Rhys Brett.

“Wollongong Coal welcomes the PAC’s decision to approve this simple time-extension application, which paves the way for mining operations to resume at Wongawilli and will bring employment and other benefits to the Illawarra and NSW,” he said.

“Wollongong Coal has an exciting vision for its future in the Illawarra and this approval is a key part of our long-term plan to bring further jobs and investment to the region.”

The Wongawilli colliery has been in care and maintenance mode since, after the longwall miner was trapped by a roof fall. The extension plans involve mining via the pillar and bord method, not longwall mining.

The PAC determination shows it considered objections from WaterNSW about the effect on the water catchment, and the need for an integrated risk assessment. The PAC forwarded these to the Planning Department, which stated the concerns had already been considered.

The decision was panned by environmentalists.

“This is another example of the PAC favouring the advice of the pro-development Planning Department ahead of other expert agencies, often to the detriment of communities and the environment,” Nature Conservation Council campaigns director Daisy Barham said.

“The mine collapse last year proved Wollongong Coal was unfit to hold a mining licence, let alone undermine such a sensitive area.”

Wollongong Coal last week reported a $70 million loss for the six months to September.

This result was a 20 per cent larger loss than reported for the corresponding six months last year.

​Shares in Wollongong Coal remained depressed, listed at 0.6 cents but doing no trade on Wednesday.