The New South Wales state government said on Wednesday that a moratorium on new mining and coal seam gas projects in the region is out of the question, stressing that the move would cost too much on job prospects for NSW residents.

NSW Planning Minister Tony Kelly said that the state would benefit more if upcoming mining activities would be strictly regulated than rejected as he pointed out that new mining project applications would be subjected to rigorous procedures.

The NSW Farmers Association appealed on the state government to reconsider the possibility of moratorium in the state as group vice president Fiona Simpson argued that science is not keeping up with the exponential expansion in the mining industry, specifically emphasising on the risks being posed by the coal seam gas sector.

Ms Simpson said that her group is raising concerns as existing legislation appeared inadequate to deal with the encroaching mining activities in NSW as she suggested that a strategic plan formulated by cross-party stakeholders must be introduced prior to any consideration of new mining projects.

She further explained that the possibility of risks attached with the coal seam gas industry it too high that sufficient research works are required to determine the environmental impacts of the technology.

Ms Simpson cited incidence in Queensland that sparked water contamination in the state due to the coal seam gas development being conducted there as she told ABC that "we think that we need a whole lot more research and we need a whole lot more science in this before our members can feel confident about this industry."

However, Mr Kelly said that imposing moratorium means sacrificing hundreds of jobs as he stressed that the state government is not yet prepared to consider the move though he gave assurance that a meeting is being planned with the farmers group to discuss a sustainable plan for coal mining.

The state government found an ally on the NSW Minerals Council with deputy chief executive Sue-Ern Tan labelling the mining moratorium as damaging not only to the state economy but also to regional communities, stressing that "a call for a moratorium on all mining is irresponsible and ill-informed."