Galong Limestone Mine will increase its output by 120,000 tonnes per year after Hilltops Council approved a long-standing application to modify its development conditions.
Glen Best, vice president of operations at the mine's owner Sibelco, said the increase in dispatch limit would assist the company in supplying its customers with lime products, including to farmers in the region.
"We believe our application proposed a fair solution for customers, the local community, Hilltops Council and Sibelco, so we are very pleased with the positive vote of our application," Mr Best said.
"We're committed to supporting the communities in which we operate and this approval will allow us to do just that.
"Operating at 430,000 will enable us to better meet demand of (agricultural lime) and road base products for the local agricultural and construction industries, which have recently had to source products from outside the Hilltops region."
Council staff included in their report to the March 27 meeting the issue of a "perceived conflict of interest in relation to the offer of $1 million by the applicant as a contribution to the upgrading of Galong Road".
The report stated due to the application being "assessed on its planning merits, the offer of a contribution by the applicant is not a planning matter and therefore has no bearing on the assessment".
Hilltops Mayor Brian Ingram said the mine application had been up for consideration for a long time and the road upgrade also involved grants from the NSW government.
"Any growth in any businesses, especially in regional NSW, has got to be advantageous to the smaller communities," he said.
"The mine will benefit from the increased tonnage, which will flow on to the community and the workers."
Cr Ingram said road safety and heavy vehicle traffic were top concerns when assessing the mine's application.