Noise levels from West Wallsend coalmine could exceed acceptable limits at Killingworth and Barnsley.
The admission is made in the coalmine's plan to continue mining in the area for 12 years.
The project would generate $184 million in royalties to the state government.
It would also add $448 million a year to the regional economy and support 390 jobs.
The coalmine, which Xstrata Coal owns, said activities at its "pit-top" had the "potential to exceed . . . noise levels in Killingworth and Barnsley under [specific] meteorological conditions".
The mine would replace the machinery that caused the noise "should it become economically feasible . . . with a new, quieter style of [coal] crusher", a report to the government said.
Noise from a "vent fan" would exceed night-time noise limits, the report said.
The company would establish noise mitigation controls and a monitoring program to address the matter.