Requiring Whitehaven Coal to recycle hundreds of large, heavy vehicle tyres would be financially and physically too difficult, the company claimed in planning documents this week.
But the company told the government it would accept a requirement that it report back every two years on local recycling options and begin recycling if it becomes feasible to do so.
Instead of recycling, the company wants to bury about 400 old tyres underground every year, within the overburden of its Maules Creek coal mine.
In its response, Whitehaven told the DPIE there wasn't a local option for recycling the tyres.
If approved, the company would be required to "regularly review local feasible recycling opportunities that may avoid the need to dispose waste heavy vehicle tyres on-site."
The company's claim has frustrated a number of local residents, who have argued the method of disposal poses a risk to the surrounding environment and to their water source.
The Gomeroi native title claimant was scathing of the burial practice, telling government in October that there is little information on the long-term effects of buried tyres.
"The disposal of waste on Gomeroi country in the manner proposed by the Proponent in this case offends the customs and cultural practices of Gomeroi People," the submission said.
In his submission, Breeza farmer Peter Wills said that landholders are legally required to pay to have their tyres recycled.
"The mining industry located within our agricultural precinct should do the same and recycle these recyclable items," he said.
The EPA announced in August that the company had been issued a caution notice for illegally burying tyres.
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