City of Greater Bendigo approved the expansion of the Augusta mine in Costerfield, acknowledging the 19 objections to the proposal. 

Many councillors admitted that local farmers' fears that their livelihoods would be threatened as a result of the expansion "weighed heavily on their minds". 

They also noted the "bad line of history" with mining companies in the region, but voted for the proposal as recommended by the city. 

Crs Helen Leach and Rod Campbell said the council imposed conditions could be lost if the matter went to VCAT, stating "it could get worse" for farmers if councillors didn't approve the proposal.

"I think the perceived risks are far greater than the real risks involved," Cr Leach said. 

But Cr Peter Cox called on councillors to reject the application, noting the potential risks and long-term environmental impacts of the proposal. 

"I woke up feeling sick to my stomach this morning, much like the families affected by this," he said. "It's weighing heavily on all of us." 

He said history had shown that mining companies could not be trusted. 

"I agree that mining has built Bendigo, and this state, but the industry has left a huge (environmental) legacy that we now have to deal with." He said Mandalay Resources had not even provided a business model to ensure the sustainability of the expansion and feared this was just the first of many expansion applications at the site. 

Cr Rod Fyffe voted against the proposal, saying it only took one mistake to destroy the livelihoods of community members. 

"I've supported mines in the past and been left with problems for the community to fix up," he said. 

Cr Elise Chapman said she could see positives for both sides of the argument.  

"I know what it's like to be affected as a farmer but I was elected to make the hard decisions," she said. 

"I hope (Mandalay Resources) do the right thing."

Cr Lisa Ruffell said no key referral agencies, including the EPA Victoria, had objected to the proposal. 

"We can't think with our heart, even though I'd like to."

The evaporation facility includes a series of shallow ponds and a storage dam, sitting above the ground to stop outside surface water entering the ponds. 

Mandalay Resources states the proposal will help manage the current and future amount of groundwater discharged from underground as gold and antimony is recovered. 

It currently does not have the correct facilities to manage this sufficiently.