The Sydney basin faced the prospect of more coal mining after the Berejiklian government sought submissions of interest in what would be the first new exploration licence in the region in more than two decades. It also applied for the extension of several other licences.

South32's Endeavour Coal is indicated an interest in exploring for coal in a 4087-hectare region just north of Picton on Sydney's south-western edge, according to the Government Gazette.

The last licence to be issued in the Sydney basin was in 1993. The government, though, has also applied to have three much larger exploration licences in the basin renewed after they expired, and has sought to have a fourth renewed before it expires next May.

Kate Smolski, chief executive of the NSW Nature Conservation Council, said “it beggars belief that the government has done this just one week after it declared the whole of NSW drought-affected”.