In August last year, EPA officers inspected the mine following reports of excessive dust emissions, and discovered a large amount of material, over the licensed annual 30,000 tonnes, being excavated and stored.

EPA manager of regional operations Lindsay Fulloon said "the quarry extracted more than 30,000 tonnes of material over two consecutive financial years, including 34,000 tonnes in one year and 60,000 tonnes in another".

"For this level of activity, council should have applied for an Environment Protection Licence, which it hadn't done," he said.

Council, which was issued with the fine on February 28, claims it was unaware of the licence threshold, and has since applied for the Environment Protection License.

Tamworth Regional Council Director of Regional Services, Peter Resch, said as soon as the potential infringement was identified council ceased operation at the site.

"The EPA has acknowledged council's cooperation in this matter and that the breach was not a deliberate act, but was a failure to be aware of the 30,000 tonne threshold which existed for small quarry operations like Spains Lane," he said.

"We now have a reporting system in place that will ensure this breach is not repeated."

Mr Resch said that the increased volume of material was being sourced from the quarry due to increased roadwork in close proximity, however, the council is now sourcing material from other quarries so as to stay under the 30,000 tonne threshold.

The EPA confirmed that the correct licence has since been applied for, and also noted that "Tamworth Regional Council has no prior history in relation to the offence".