The NSW government is calling for expressions of interest for the sale of the Cobbora Coal Mine near Dunedoo in the state's central west.
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NSW Treasurer Andrew Constance announced the next stage of the process could proceed now all of the NSW and Commonwealth planning approvals were in place for the mine development.
The Cobbora Coal Mine was initiated by the previous Labor government to provide subsidised coal to the state-owned power generators - a deal which exposed taxpayers to a liability of more than $1.5 billion in development and operation costs.
"The NSW Liberals and Nationals government has made clear from day one that the state should not be in the business of running a coal mine", Mr Constance said.
Potential resources at the Cobbora Mine development are significant, with reserves of at least 140 million tonnes of thermal coal. Mine development and local infrastructure plans are also in place to allow development to proceed.
"In the meantime, the mine site will continue to be improved and actively managed for agricultural use while the transaction process is under way," Mr Constance said.
The call for expressions of interest for the proposed mine follows the allocation of $20 million for local infrastructure from the Cobbora Transition Fund.
It includes $16 million announced by the Member for Dubbo Troy Grant and the Member for Barwon Kevin Humphries and state member for Orange Andrew Gee.
A further $4 million was also allocated to the Wellington, Warrumbungle, Mid-Western and Dubbo councils for building projects.
The expressions of interest phase for the Cobbora Coal Mine closed to prospective bidders in early September 2014.
A spokesperson for the NSW Treasurer Andrew Constance says there have been 'bidders' or those expressing an interest in taking on the Cobbora Coal mine.
"We are in the final phase of completing this and will be in a good position to outline details then," a spokesperson said.
"There is a team of experts in charge of the energy transition."
While not confirmed, the number of those interested in the mine might be more than 10 but couldn't be commented upon by the state government spokesman who said the expert team was still looking at the groups who had shown interest.
