Operators of the Cadia Newcrest gold mine have apologised to local residents living near Australia's largest gold operation. 

The mea culpa comes as concerns were raised regarding health issues stemming from dust emissions at the mine.

A state hearing has heard allegations of dust pollution breaches at the Cadia gold mine in Orange, owned by Newcrest Mining, and the subsequent discovery of heavy metals in nearby residents' blood and rainwater. 

The source of these heavy metals is currently under investigation by the EPA.

On Monday, Sherry Duhe, interim CEO of Newcrest Mining, and Michael Dewar, general manager of Cadia Valley Operations, appeared before the inquiry to field questions. 

Ms Duhe admitted, “We haven't always gotten things right"”and acknowledged a “breakdown in our relationship with some of our neighbours”. 

She expressed regret for not listening more attentively and communicating better.

Concerned residents took independent action in July by testing their drinking water and blood. 

The EPA has initiated criminal proceedings against Newcrest Mining, citing an alleged breach of section 128 of the Protection of the Environment Operations Act 1997.

Residents have criticised NSW Health for advising local doctors to delay testing for heavy metal contamination until symptoms emerged. They claim that the community has been let down by the agency and express dismay over elevated rates of lung disease in the area.

Ian Wright, an associate professor of environmental science at Western Sydney University, reported that water tests on 10 properties in the Cadia Valley in August revealed lead concentrations exceeding Australian drinking water guidelines on all 10 properties. 

Dr Wright suspected dust from the mine was contaminating roofs and washing into tanks. He criticised the sampling methods of the EPA and NSW Health as inadequate.

Michael Dewar countered claims that the mine emitted dangerous levels of dust outside its boundaries, citing data from external monitors.

Cate Faehrmann, a Greens member of the legislative council, pointed out that the mine had been fined three times for dust pollution breaches, totaling $45,000, while Newcrest Mining recorded a profit of $778 million in the last financial year. 

NSW EPA CEO Tony Chappel admitted that past engagement with the community had been insufficient and acknowledged concerns about mine operators viewing fines as a cost of doing business.

The proceedings will continue in October.