Newcrest is facing a nearly 50% rise in its council rates after the local Blayney Council was given the greenlight for the rate rise.
The Independent Pricing and Regulatory Tribunal have approved the council's move to increase rates for Newcrest's Cadia gold mine by more than 40%, the ABC reports.
It is believed that the increase will generate close to $1.5 million, which will mainly be used for infrastructure repair and maintenance around the mine.
Blayney Council mayor Bruce Kingham welcomed the approval.
The mine has a massive impact," he said.
"The traffic using some of our roads especially early in the morning and later in the afternoon, it's like Parramatta Road.
"There's one car behind the other and Blayney Council doesn't have the rate revenue to spend millions of dollars on the road infrastructure in and out of Cadia."
It comes as Newcrest starts ramping up Cadia despite an overall fall in gold production across Australia so far this year.
Bucking the trend of many local councils, mayor Kingham has typically supported the mine, last year approving the construction of a self contained mining village near the town.