A key industry group has thrown its support behind the Abbott's government's decision to go ahead with the $1 billion Shenhua Watermark coal mine, confident that tough conditions have been set to protect land and water in the area.
The Australian Industry Group believes the mine will make a much needed contribution to the NSW state economy and will provide hundreds of jobs in its construction and ongoing operation.
"The Watermark mine clearly arouses strong feelings, and the government deserves credit for taking a considered decision on a difficult issue," Ai Group NSW director Mark Goodsell said in a statement on Sunday.
But Agriculture Minister Barnaby Joyce, whose New England electorate will house the new mine, labelled the decision "ridiculous" when he found out about it last week.
Senior government minister Andrew Robb said he understood why Mr Joyce was upset over the decision.
"If it is next door to you, I wouldn't like it much either," he told Sky News.
But he said the government won't be changing its mind and believed it had got the balance right between its agriculture and resources responsibilities.
He said Prime Minister Tony Abbott was aware of Mr Joyce's strong views on the issue, but believed he was "comfortable that is it is not going to cause a fractioning within the coalition".
Labor's agriculture spokesman Joel Fitzgibbon disagreed and believes Mr Joyce had two choices - either back the government or resign.
"The only way Barnaby Joyce rebuilds credibility and support in his own electorate is to walk away from the cabinet, to go back to his backyard and defend his local people," he told ABC television.
However, Mr Fitzgibbon declined to say whether he supported the mine.
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