The NSW Government has assured landholders in the Caroona region that coal mining developments will not go ahead until a full environmental assessment has been done. The Caroona Coal Action Group was officially formed last week and is made up of farmers and community members who are worried that mining will damage groundwater aquifers and potentially cut off their water supply.

The New South Wales Mineral Resources Minister Mr Ian Macdonald assured that the community will be consulted in the planning process. "There will be a very rigorous environmental impact statement process involved in this and that will include analyzing the water situation, particularly underwater supplies and making sure that it stacks up environmentally," he said. "It has to stack up before it will get the final go ahead."

BHP Billiton has been issued an exploration license for Caroona, while a JV has secured a lease for the new Tarrawonga coal mine, about 15 kilometers north east of Boggabri.