A proposed expansion of the mine was knocked back by the Independent Planning Commission (IPC) despite it being recommended for approval by the NSW Planning Department.

Read more: UOW student residences won't open for at least a year

Mr Latham has put forward a bill in the Upper House calling on any future development of the South32-owned mine to be declared State Significant Infrastructure.

That would see the IPC cut out of the loop, as the Planning Minister Rob Stokes would be responsible for determining the fate of the project.

In a speech in Parliament, Mr Latham called the IPC decision "arrogant and incompetent" and branded the panel itself "a failed, ideologically driven and extremist body that should be abolished".

"The bill overturns the IPC decision in the Illawarra and restores a commonsense planning proposition that jobs must come first," Mr Latham said.

Mining opponent Lock the Gate's Nick Clyde called on the Berejiklian government to rule out voting in favour of the bill.

"This is an extraordinary and unprecedented step and we're calling for immediate clarity from the Berejiklian government that they will not be voting for it," Mr Clyde said.

"This sets a terrible precedent for law in NSW and represents a massive risk to the future of Sydney's drinking water."

Mr Clyde said if the motion passed it would effectively give South32 "a blank cheque" to get State Significant Infrastructure status without the government knowing what a future proposal would contain.

We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.

Subscribe to our newsletters