A dormant NSW coal mine could soon restart operations. 

The Cullen Valley Mine has been in care and maintenance since 2013, but its new owners have received approval to restart operations. 

The owners also want to restart the neighbouring Invincible Colliery, which could see both sites revived for another decade at least. 

A group of locals that bought the mine have obtained approval to mine about 450,000 tonnes from remnant resources at Cullen Valley over the next nine months and then start rehabilitation activities. 

If an approved underground mine on the site is built, it could allow access to another 20 million tonnes. 

The owners plan to send 1 million tonnes of saleable coal to Energy Australia's Mount Piper Power Station, which is only about 5km away.

Lithgow City Council mayor Maree Statham says the region has an obligation to keep the nation's homes powered if it can. 

“At the moment there are power stations that require coal,” Ms Statham says. 

“The longer that they can go the more chance that we can have diversification.”

A decision is expected to be made by the end of the year on whether or not a far bigger project, the Invincible Colliery, can be reopened.