Three corruption-tainted coal licences in regional NSW will be cancelled in what Premier Barry O'Farrell says will draw a line under an "appalling episode" in the state's history.
But laws to strip assets from those who profited from the corrupt granting of the licences will not be introduced to parliament until next month.
The Mining Amendment (ICAC Operations Jasper and Acacia) Bill 2014, which cancels exploration licences for Mount Penny, Doyles Creek and Glendon Brook in line with recommendations from the Independent Commission Against Corruption (ICAC), passed through NSW parliament on Thursday.
The ICAC mounted extensive investigations into political figures and businessmen including former Labor MP Eddie Obeid, former mining minister Ian Macdonald and ex-union official John Maitland.
ICAC counsel assisting Geoffrey Watson famously described the corruption to be probed by the watchdog as having been unrivalled in NSW since the days of the Rum Corps.
Mr O'Farrell on Thursday echoed those words.
"(This bill) will draw a line under this appalling episode," the premier told parliament.
"It will restore to the people of NSW the assets that were taken from them for private gain and without proper regard to the public interest.
"Most importantly, it will continue the process of restoring to the people of NSW their confidence in the integrity of government and the mining industry in this state."
Opposition Leader John Robertson was absent from the lower house, leaving Labor MP Paul Lynch to confirm the party's support for the licence-cancelling laws in the legislative assembly.
Under the legislation, compensation will not be paid as a result of the cancellation of the suspect licences.
The laws indemnify the state against lawsuits arising from the cancellation but do not protect anyone who has engaged in deliberate wrongdoing.
Anyone who profited from the corrupt licences could also be forced to hand back the ill-gotten windfalls.
"I note that this bill does not address all of the matters raised in ICAC's report," Mr O'Farrell told parliament.
"The government proposes to introduce a further bill to deal with those and other associated matters after parliament resumes at the end of February, in the hope that we can seek to claw back some of the profits made by those involved in this sorry saga."
Mining firm NuCoal Resources, which now owns the Doyles Creek licence, has previously described itself as an "innocent party" and threatened to mount a constitutional challenge to protect its interests.
A company spokesman did not wish to comment following the passage of the laws through parliament, telling AAP: "We're considering the legislation and will respond in due course."
Cascade Coal, which had proposed mines at the Mount Penny and Glendon Brook sites, on Thursday penned an open letter urging the government not to rush through its legislative response to the ICAC findings.
"This action is extraordinary and is an unreasonable position for any government to adopt particularly when the core recommendations of ICAC, which form the basis of the proposed legislation, are being challenged in the Supreme Court," the letter said.