Muswellbrook Shire Council’s draft policy, released last week, attempts to protect land users, including the town, which is surrounded by six operating mines and a swathe of coal titles.

Over coming weeks, Muswellbrook councillors will refine the draft to balance coal’s economic contribution and, in some instances acknowledge its ‘‘primary’’ position, with measures to ensure the health and well-being of residents, the protection of alluvial lands, aquifers and the thoroughbred industry.

The plan comes at a time of unprecedented industry expansion.

Hunter Valley output is expected to increase from 135million tonnes in 2011 to 163 million in 2012 and 216million in 2015, council research stated.

Production in the Muswellbrook shire alone has increased from 4million tonnes in 2001 to a about 37million tonnes in 2011 and the town is at the centre of the region’s busy coal rail system.

The draft favours more intense mining at existing and approved operations rather than a bigger mining footprint.

‘‘Land-use conflict needs to be managed between mining activities ... particularly in regard to the development and growth of the Muswellbrook township,’’ the draft stated.

The draft nominates several instances when it will not support coalmining so that land is ready for diverse uses.

These include where mining impedes farming on alluvial land and lands associated with the rich river soils, development of urban areas, eco-tourism and the thoroughbred industry and if the industry disturbs the shire’s World Heritage-listed Wollemi National Park and the Goulburn River National Park.

Coal has primary consideration in areas identified for mining, but the council is looking for a ‘‘whole of life’’ consideration when it comes to development of the resource.

Cr Ray Butchard, who has served on the council’s environment committee for 20 years before being elected, fears the land-use policy may be ‘‘too late’’ for Muswellbrook, but says the draft is necessary.

‘‘It [the policy] is important to have in place to advocate and lobby both Coalition [NSW government and [federal] Labor.

Cr Butchard said he would like coal exports held at present levels.

The draft will return to council on Monday, October 10.

The NSW Minerals Council said it had called for leadership on strategic land use planning for a number of years because of the need to minimise land use conflicts and provide certainty for all land users.