This article is more than 11 months old

This article is more than 11 months old

The New South Wales government is considering opening two large coal fields to exploration as it seeks to make the state the “number one mining investment destination”, Guardian Australia has learned.

The Advisory Body for Strategic Release, which controls the state’s minerals reserves, has written to the deputy premier, John Barilaro, who is also the minister for regional affairs, recommending the Berejiklian government approve the development of the Hawkins-Rumker area in the central tablelands and the Wollar field near Bylong.

“No decision has been made by the NSW government to open up areas to strategic release,” a spokeswoman for Barilaro said.

“The NSW deputy premier is determined to make the state the number one mining investment destination and coal has a critical part to play in that.”

Approval could open the door for more areas to be developed, including the Doyles Creek mine linked to the former NSW resources minister Ian Macdonald, who is to face trial on corruption charges in February, with the former Labor powerbroker Eddie Obeid.

Massive Bylong valley coalmine in NSW blocked on environmental grounds Read more

It comes as the NSW government considers legislation to ease the way for new mines by preventing planning authorities considering the environmental impact of emissions when coal is burned.

NSW’s economy is the worst performing on the east coast, with gross state product last year a low 2.6% – a result that was propped up by state government spending.

Spending growth in the state recently fell to zero after consumers closed their wallets and Sydney’s housing market stalled.

The Hawkins-Rumker field, described by the NSW environment department as “two large, adjacent export-quality thermal coal resources”, is near Rylstone, in the north of the Bathurst electorate held by Barilaro’s National party colleague and minister for regional transport and roads, Paul Toole.

Wollar, which already plays host to two coalmines, is a little further north in the Upper Hunter seat of another National, Michael Johnsen.

A new Wollar field would be likely to be of interest to the American group Peabody, which has repeatedly expanded its existing Wilpinjong mine despite vocal opposition from locals.

The strategic release body was set up as part of an overhaul of the mining licence system recommended in 2013 by the Independent Commission Against Corruption, which conducted a series of investigations into the sector.

Its chairman is Mark Darras, a lawyer and former Australia Post director who was appointed by the then resources minister, Don Harwin, in 2017 to be a “truly independent chair”.

Guardian Australia understands Darras wrote to Barilaro recommending he open the Hawkins-Rumker and Wollar fields a little under a fortnight ago.

The next step in the process is consideration by cabinet, after which the exploration licences would be put out for auction. It is believed the NSW government could make a decision by Christmas, opening the way for an auction early next year.

The usual environmental approvals would still be required before any mining could take place.

If the process succeeds, it could open the way for the redevelopment of the Doyles Creek mine, which has been shut since 2014 when the NSW government cancelled its licence on the recommendation of Icac.

This would likely spark fresh anger from NuCoal, which bought the licence in 2009 from a company associated with the former union official John Maitland.

Maitland had received the licence from Macdonald the previous year.

NuCoal has so far been unsuccessful in a series of legal challenges against the cancellation that have gone all the way to the high court, and currently pins its hopes of compensation on a private member’s bill put forward by the upper house Christian Democrat Fred Nile and the possibility of action under a trade treaty with the US.

Both Macdonald and Obeid were due to face trial this year over corruption allegations related to a different exploration licence in the Bylong Valley, not far from Wollar.

However, late last month the hearing was put off until February following media coverage of the Icac hearing into donations NSW Labor allegedly received from the Chinese-Australian billionaire and tax fugitive Huang Xiangmo.

“The press coverage of the Icac hearing included, by way of commentary, repeated adverse reference to the accused Mr Edward Obeid and Mr Ian Macdonald utilising a range of epithets,” supreme court judge Elizabeth Fullerton said.