Werris Creek Coal has been fined $15,000 following an alleged water discharge incident earlier this year.
The Environment Protection Authority says the mine failed to drain a sediment basin which lead to an overflow on February 18.
The water, which potentially contained harmful pH levels, is alleged to have then escaped into the Werris Creek catchment.
The EPA estimates the basin hadn’t been drained since February 3.
The breach broke a dam regulation, which requires basins to be drained within a five-day period of heavy rainfall.
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