"Gloucester Council has decided to give only partial support to expansion plans coal miner Yancoal has submitted.
The council rejected Yancoal’s proposal to return to 24 hour operation and any expansion that will impede within a one kilometre radius of the NSW town of Stratford, the ABC reported.
However, final approval of the projects lies with the state government.
Barrington/Gloucester/Stroud Preservation Alliance Chairman Graeme Healy says the council's stance is inline with public sentiment.
"I think we should all be happy that council has adopted those positions," he said.
"They've highlighted the two large areas of concern for many in the community that is the 24-hour mining and the moving of the mine, the pit closer to Stratford village.
"They're two key issues that are of great concern in the community.
"Council's strongly opposed to that and I think it's a good outcome."
Healy added that partial approval of the proposal is a realistic outcome.
"It would be impossible to have the Department of Planning and the current NSW government holt that in it's tracks," he said.
"I think it's realistic.
"Others in the community will say that enough is enough and we've put up with our fair share of disruption over the last 20 years and it should all be wound up."
Gloucester mayor John Rosenbaum said the council's recommendation will now go to the State Government for consideration.
"We're opposing part of the expansion, the other section that they're wanting to expand we're reasonably happy for that to go ahead providing they fulfil the obligations that we've put in here," he said.
"There has to be financial benefits to our community, there has to be better monitoring with the dust.
"You know the conditions that we're looking at imposing are more substantial than what we have done before."
In November Australian Mining reported that the expansion of Yancoal’s Stratford mine would double its workforce, defying current coal market trends.
The development proposal is expected to add another years to the mine’s life as well growing its annual output to around 2.6 million tonnes of ROM coal.