The approval by the Commonwealth Department of Environment of the Cobbora coal project near Dunedoo will trigger the infrastructure funding for the 353 road from Wellington to Dunedoo.
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The exciting news brings relief to the community as the road, which is a major thoroughfare for the region, will now be fully-sealed.
Wellington mayor Councillor Rod Buhr says it is good news. Some say a game changer for tourism, traffic flow and road safety for the area.
"It's a great result," Mayor Buhr said.
"Council has negotiated this outcome after a long campaign to seal this road. Now we're on the way to a successful conclusion."
The scope of work and the timelines are being put together by Wellington Council's Technical Services director Stan Robb who soon will reveal further details of the construction to a council meeting, Wednesday week.
There was also news Cobbora Transition Fund distribution will be announced by month's end. Wellington has a number of projects on the shortlist for this including the CBD beautification, Rygate Park, the Showground, the swimming pool and independently, the Wellington Wiradjuri Cultural Centre proposal is in the running.
The Cobbora Project has been approved subject to 20 conditions.
The state government-owned mine would produce up to 12 million tonnes of coal a year for domestic and export markets.
It is the focus of much speculation in the region after unconfirmed rumours swept the area last week that a Korean group was looking to take up the mine.
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The state government's Planning Assessment Commission approved the Cobbora Coal Project in May this year.
The Commonwealth approval was granted on Thursday under the Environment Protection and Biodiversity Conservation Act.
It is effective until July 1, 2064.
Commonwealth conditions of approval include:
Cobbora Holding Company (CHC) must not clear more than 28 hectares of box gum woodland, 41 hectares of grey box woodland and 1773 hectares of native woodland. An integrated land management plan must be implemented before work begins.
CHC must prepare a Biodiversity Management Plan to protect water resources and threatened species.
The company must take measures to relocated or protect the spotted-tail quoll, the large-eared pied bat and the southern long-eared bat, threatened species which were identified by surveys on the site;
CHC must provide compensatory water supply to any landholder whose water supply is adversely affected by the action;
CHC must also prepare a Water Management Plan showing how water resources, aquatic and riparian ecosystems, including semi-permanent refuge pools in Sandy Creek and Laheys Creek, will be protected;
A propagation plan must be prepared before the mine commences, showing how endangered plant species will be propagated on environmental offset areas;
CHC must publish a report on its website within three months of every anniversary of the mine commencing, showing how conditions have been met;
CHC must publish all management plans within 21 days of approval.
The government last year confirmed that intends to sell or lease the Cobbora Coal Mine development.
