NSW Minister for Mineral Resources Ian Macdonald has told Gloucester Shire Council he is likely to renew mining exploration licences despite concerns they could jeopardise the area's economy.
Gloucester Mayor Julie Lyford met Mr Macdonald and Minister for the Hunter Jodi McKay in Sydney yesterday to express fears that valuable tourism, agriculture and lifestyle industries would be threatened.
"He said he would renew the licences unless compelling reasons were given by his department," Cr Lyford said.
"We can't see what those compelling reasons would be at this stage."
Cr Lyford said Mr Macdonald had said he would speak to licence holder Gloucester Resources about the community's concerns.
Ms McKay, who arranged the meeting, said she would not support mining close to the town.
"My primary concern has to be the community," she said yesterday
"I have very serious concerns about the exploration licence area in regard to its proximity to the town.
"It basically surrounds the town and this is the gateway to the Barrington Tops."
She said the exploration area needed to be a distance from the community, to bring jobs but not hurt tourism.