The Bickham Coal Company welcomed the move, saying it was confident the proposed mine would not adversely affect the nearby Pages River.

"Now that it's going to an independent panel of interstate experts, everyone can stand back and be sure its being reviewed in the most proper, rigorous and impartial manner," Bickham Coal director John Richards said.

The Upper Hunter Waterkeepers Alliance's Patrice Newell said farmers and others in the area opposed the mine.

"With our water system at stake I welcome any review of Bickham Coal Company's appalling coalmine proposal and water plan," she said.

At a public forum in Denman last night, residents heard that more coalmines could drive out other agricultural sectors critical to the town's survival.

Residents at Denman Memorial Hall were angered at the proposal for two separate applications for coal exploration licences around the town.