Four state government ministers and their staff are now working to pave a way for offshore dredging to be used as a long-term solution for Stockton Beach nourishment.
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Deputy Premier and Resources Minister John Barilaro said on Thursday that the matter was above politics and stressed the government was eager to assist the community and City of Newcastle.
But the government insists its hands are tied until the council applies for a mining licence.
The project would set a precedent for using offshore dredging for sand nourishment in NSW and would likely be adopted by other councils as a method of dealing with coastal erosion.
He clarified that offshore dredging is not illegal in NSW, but it required a mining lease.
As a state significant development it also requires a development consent.
"If the proposal successfully obtains development consent, then I, as minister, will release the relevant areas and assess and determine the required mining licence application under the Offshore Minerals Act 1999."
In response, City of Newcastle chief executive Jeremy Bath confirmed offshore dredging was the council's preferred option for beach nourishment but said it had previously been advised the process of gaining approval could take up to five years.
In a further twist, he also asked the government to identify offshore sand deposits suitable for beach nourishment and to provide land owners (the government) consent for the project.
Mr Barilaro confirmed on Thursday that the government would assist the council to identify suitable sand once an application had been received.
"The inner continental shelf off the coast of NSW contains large volumes of sand, some of which could potentially be suitable for beach nourishment, however no new offshore exploration work has occurred in NSW since the early 1990s," he said.
A spokesman for Crown Lands, which is overseen by Melinda Pavey, said land owners' consent for the area within three nautical miles of the coastline could be sought as part of the process of lodging a development application with the Department of Planning, Industry and Environment.
"It (the council) could also notify the department of its intention to lodge a development application, in accordance with clause 49 of the Environmental Planning and Assessment Regulation Act 2000," the spokesman said.
"Areas outside three nautical miles of the coastline are under the control of the Commonwealth."
Local Government Minister Shelley Hancock brought forward the deadline for the council to submit its Coastal Management Plan by six months in response to concerns about the state of Stockton's foreshore.
While an application for an offshore mining licence is likely to be part the council's coastal management plan, it could technically be lodged earlier.
The project must first be declared as a state significant development before the mining licence component can be assessed.
Planning Minister Rob Stokes confirmed an application from the council would likely be classified as a state significant development.
"We're open to exploring any option to solve the critical erosion issue at Stockton Beach, but we're yet to receive a proposal from council with regards to offshore dredging," he said.
"I would urge council to expedite its Coastal Management Program to find a long-term solution."
The state government has to date provided the City of Newcastle with more than $500,000 to manage erosion issues at Stockton Beach, including an additional $175,000 in November.
The council estimates it has spent $5 million of its own funds on erosion works at Stockton since 2015.
Offshore dredging has been successfully used at at the Gold Coast and internationally in the Netherlands over the past decade.
In 2017 an offshore dredging program saw three million cubic metres of sand pumped onto Gold Coast beaches to combat erosion partially caused by the Tweed River breakwaters.
It took about four months, cost $13.9 million and moved enough sand onto five beaches to fill 15,000 Olympic swimming pools, or about six times the amount needed to renourish Stockton beach.
The Gold Coast project was designed to last up to 15 years.
