The NSW Government has approved controversial plans for Australia's largest underground mine in the state's central-west.
The $2 billion Cadia East project near Orange will extend the lifespan of Cadia Valley Operations by at least 20 years and will be the world's fourth largest gold mine.
Premier Kristina Keneally says the project will provide a major shot in the arm for the region.
"This will have far-reaching benefits for people of central-west NSW," she said.
"It's going to pump money into the local economy and provide jobs for local communities."
The Premier made the long-awaited announcement overlooking the giant open pit of the Cadia Hill mine. She was flanked by several local mayors, including Orange mayor, John Davis.
He says the project is vital to the region's economic prosperity.
"I'm over the moon and super excited about this project," he said.
"It should not be underestimated how important the mine is to the region's economy."
It is a statement the NSW Planning Minister, Tony Kelly, strongly agreed.
Mr Kelly says almost 80 strict conditions will manage the environmental affects of the mine expansion, following concern from local landholders about the potential impact on surface and ground water supplies.
"This region has been in drought for the last decade - places like Molong, Blayney and Orange have not suffered as much as they would have had this mine not existed. It's been great for jobs," he said.
"If at any stage the company is not able to show it has sufficient water for the expansion, it must curtail its operations."
Source: www.abc.net.au