A Gloucester delegation is due to meet Mr Macdonald on Tuesday to voice fears that open-cut mines may eventually be built close to the town in licence areas held by Gloucester Resources and which are close to expiring.

The delegation will be led by Gloucester Mayor Julie Lyford, who said the council voted unanimously to approach the minister.

Mr Macdonald issued a statement to The Herald that indicated he would not agree to their request.

"Mining and agriculture must co-exist," Mr Macdonald said.

"Mining provides jobs to rural communities like Gloucester and helps keep people, especially young people, at home."

In the statement, Mr Macdonald quoted a Charles Sturt University study issued last year that found people who lived in regional towns with mines earned thousands of dollars more than those in non-mining towns.

"The average individual income is approximately $6000 more in regional towns with mining than those without," he said.

Cr Lyford acknowledged the economic benefits of the Stratford coalmine but said she did not want any more, because of the effect the industry had on agriculture and tourism.

Mr Macdonald said that if a site was mined it would be a fraction of the size of the exploration area and people should realise an exploration licence was not an approval to develop a mine.

He said any proposed mining development would be subject to "rigorous environmental assessment".