An application for the Ashton Coal south-east open-cut is expected to be referred to the independent Planning Assessment Commission this week for it to determine.

Ashton operator Yancoal has blamed the wait on a government answer on the project after its decision to sack 18 full-time staff and possibly retrench 90 within weeks.

Its existing north pit ceased full-scale operations in December and workers had little to do, it said.

Hunter Environment Lobby member Bev Smiles said the project had raised concern within the community and agricultural industries about potential impacts on water systems and alluvium areas near Glennies Creek, as well as the expected increase in dust.

She said the commission should hold a hearing so the community could have a say, as it had for other contentious projects.

It was unlikely the workers would struggle to find other employment given the labour shortage in the mining industry, she said.

The Coalition permitted the project and a range of other existing applications to continue to be assessed under Labor's part 3A major project laws.

However, it said the commission would make the decision rather than the Planning Minister.

The company revised the project this year after lodging an environmental assessment in late 2009.

"The closest part of the open-cut pit will now be 900 metres from the nearest privately owned Camberwell village residence and at least one kilometre from all other privately owned Camberwell village residences," the latest documents say.

"This additional setback will sterilise about 500,000 tonnes of . . . coal, but is considered necessary to reduce potential health and amenity impacts on Camberwell village residences."