A tiny town of less than 400 people is preparing for the latest round in its battle against mining giant Rio Tinto.

Bulga is a small village on the edge of NSW’s Hunter Valley, and stands as a gateway to the major mining works in the Hunter.

But the townspeople are wary of the ever-expanding industry, and were recently awarded a decision in the NSW Environment Court, which overturned Rio Tinto’s plan to expand its Mount Thorley Warkworth Mine.

The residents thought they had seen the last of Rio, until the company lodged a new application for a modified expansion plan.

The proposal now includes the mining of the small ridge separating Bulga and existing mines.

Rod McGeoch, the lawyer who fought for the residents of the Singleton Council the first time around, says the case should have been finished.

“They won on every single argument, dust, noise, economic impact. Quality of the economic figures involved. Everything,” he told the ABC.

“All they did was exercise their legal rights and beat one of the biggest mining companies in the world.”

Bulga resident John Krey told reporters that the mines have shattered a peaceful way of life.

“I think that the State Government and their keenness to please the mine is going to be the end of Bulga.

“We'll be looking straight at a mine and it works 24 hours a day, 365 days a year.

“This is no longer the countryside that we came to, this is now becoming an industrial area,” he said.

Chris Salisbury, the managing director of Rio Tinto Coal Australia, said the mine must be expanded to save jobs.

“We cannot keep operating at the current level of production, which means job losses. Some of our 1,300 employees and contractors will lose their jobs,” he said.

Rio Tinto has reportedly put up a revised assistance package for the residents of Bulga, including offers to buy 24 of the villages’ 152 homes.