The New South Wales Minerals Council says the industry cannot afford to cover coal trains to protect environmental and human health, and says fireplaces are a bigger risk anyway.

The claims came as part of a parliamentary inquiry into the performance of the NSW Environment Protection Authority (EPA), which has been accused of failing to properly protect the Hunter region from coal dust.

The EPA’s data analysis showed there was a health risk posed by uncovered coal trains, albeit a low-level and fairly isolated one.

The Minerals Council says the EPA’s own report devalues their mission to find problems.

A speaker at the hearing said the amount of dust that comes from uncovered coal trains is in dispute, and the cost of retro-fitting wagon lids (around $10,000 to $15,000 per wagon) was prohibitively high.

Minerals Council spokesperson David Frith said a recent incident at Bulga Coal in Singleton showed that the regulator has been over-zealous in awarding infringement notices and searching for prosecutions.

“This year a mine was prosecuted for what the judge described as a minor, non-toxic, water discharge that temporarily affected a limited area within the mine site,” he said.

“The mine had no prior convictions and the judge found that it was unlikely to re-offend.

“Those circumstances don't seem to align with the EPA prosecution guidelines which point to serious breaches or repeat offenders.”

He said stats showed that domestic wood heaters are a greater threat than coal trains.

On a separate issue in the same region, the Minerals Council is on a campaign to change planning laws.

The industry advocate says the Planning Assessment Commission (PAC) gateway for mining projects adds months of additional delays for new projects.

Community members from the Lock the Gate Alliance say the government should show leadership and stand by its reforms.