Mine subsidence is the movement of the ground that can be caused by underground active or historical coal mining activities, which may cause damage to structures built above.
The Coal Mine Subsidence Compensation Fund lets responsible miners in NSW support any residents impacted by current, historic or former mining activity.
In NSW, mines subsidence areas exist across Newcastle and the Greater Hunter, as well as the Wollondilly Shire in Sydney’s southwest. Residents affected by damage to buildings and other structures are assisted by Subsidence Advisory NSW.
Under the new laws, Subsidence Advisory NSW can provide residents with temporary accommodation, payments for relocation costs and, where necessary, direct people to evacuate in a mine subsidence emergency.
While previously only property owners were entitled to compensation, the new laws give tenants reasonable relocation and short-term accommodation expenses where the property they are leasing is uninhabitable, under repair or under construction due to subsidence.
Other changes include the requirement for pre-mining property inspections to take place for areas which may be at risk of subsidence damage and giving Subsidence Advisory NSW clear powers to obtain the required information from mining companies, to ensure a comprehensive and accurate claim assessment.
In the five years to 2023, 168 mine subsidence compensation claims were paid out in NSW, which included 89 claims in active mining areas and 79 claims in non-active mining areas. In addition, 381 mine subsidence safety issues reported through Subsidence Advisory’s 24 Hour Emergency Hotlines were remediated. The hotline predominantly supports the Hunter & Lithgow regions where potholes from historical coal mining can appear on road surfaces.
The Coal Mine Subsidence Compensation Amendment Bill 2024 was introduced to NSW Parliament on 20 June 2024 following a statutory review of the Act, and a consultation process allowing residents and mine operators the chance to have their say on the amendments.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
“Mining is essential to the NSW economy. These changes ensure that the residents impacted by subsidence are protected.
“These important changes ensure people living above primarily historic and former mining activity get the support they need if the worst should happen.
“Whether it’s a recent mine or one from 150 years ago, these changes will grant further powers to Subsidence Advisory NSW to better assist residents.”
