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The EPA is investigating the incident which resulted in a portion of the dam wall collapsing and discharging sediment laden rainwater to the environment.

The EPA is also concerned that it took nearly a week for mine personnel to discover the problem and report it. An assessment of the monitoring systems currently in place at the mine will form part of the EPA’s investigation.

“Following record rainfall in the Hunter Valley there was an discharge of water from a small temporary sediment control dam that captures surface run-off at Peabody’s Wambo mine complex,” the Peabody spokesperson said.

“The sediment control dam -- approximately the size and nature of a small farm dam -- was designed in accordance with Wambo Coal’s approved Environmental Management System and relevant NSW government guidelines.

“The dam is a temporary measure designed in accordance with NSW government guidelines to manage runoff from an area scheduled to be cleared for future activity.”

The dam was inaccessible due to the heavy rain event, the spokesperson said.

“Along with the safety of our employees, responsible environmental management is a core value for Peabody and we take incidents of this nature very seriously,” she said.

“Peabody is working with the EPA.”