The NSW Government wants to change planning laws to remove a rule that made the economic benefits of a proposed coal mine the main consideration when assessing for approval.

The Government wants to undo the State Environmental Planning Policy (SEPP), introduced just two years ago, which has been strongly criticised for making planning assessments in favour of the mining industry, ignoring environmental and social factors.

The new proposal has been met with resistance from the mining industry, with the future of the big Mount Thorley-Warkworth expansion close to final approval.

The NSW Minerals Council is fuming, with CEO Stephen Galilee calling the move “a retrograde step that will hurt NSW”.

“It will put at risk thousands of current and potential jobs, particularly in regional mining communities where unemployment is often well above the state average,” Galilee said.

"Getting the balance right is important, but you can't have viable communities and a clean environment without a strong economy.

“At the end of last year the Premier committed to halving project assessment time frames to improve investor confidence and support jobs.

“This proposal does the exact opposite, relegating the industry to uncertainty and putting thousands of jobs in jeopardy.”

Galilee said that any changes should not be retrospective, to minimise impacts on “projects close to completing the assessment process”.