Lake Cowal gold mine expansion approved by federal government

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One of New South Wales' biggest gold mines has received federal approval to expand further into the state's largest inland lake in the Central West region.

Evolution Mining applied to expand its main open cut pit into Lake Cowal, dig three new pits, and extend its operation until 2042.

The company estimated the expansion would pump more than $900 million into the state's economy over its lifetime, and produce around 1.6 million ounces of gold, and 1.5 million ounces of silver.

The New South Wales government gave the project the green light in December.

The state government estimated the three new open cut pits would lead to an extra $56 million in royalties, and create a further 64 full-time equivalent positions during the construction phase.

Evolution Mining's managing director and CEO Lawrie Conway said in a statement that obtaining federal approval was "extremely pleasing".

"This approval gives us the green light to keep Cowal operating for years to come," he said.

We've taken this project through a thorough and rigorous approval process, and we appreciate the collaborative input and valuable feedback from government and all our stakeholders that has helped us achieve this successful outcome.

the potential expansion could jeopardise the lake's bird breeding periods.

Part of the mine currently occupies 132 hectares of the lake's 13,500-hectare area.

The green light means the mine's operations will be extended to approximately 500 hectares of the lake's area.

The disturbance area includes land classified as critical fish habitat, and significant habitat for migratory bird species.

The company also proposed to extend a barrier wall that separates the mine from the lake to more than 6 kilometres in length.

Lake Cowal operations general manager Joe Mammen said in a statement the company would meet all the environmental conditions specified in the consent.

"We're fully committed to meeting all the necessary requirements, including measures to protect biodiversity, environmental offsets, and ongoing reporting to ensure we comply with the relevant conditions," he said.

We're looking forward to seeing the significant economic and social benefits it will deliver to the Central West region.

A spokesperson for the federal Department of Climate Change, Energy, the Environment and Water said it gave the go-ahead for the extension with "strict" conditions to safeguard vital habitats for threatened and migratory species.

The company will make a call on the expansion project at its board meeting later this year.