One of the first sightings of coal on the east coast was the coal seam located underneath the Sea Cliff Bridge.
The name Coalcliff originated in 1797 when three survivors of a wreck set out to walk to Sydney. They found coal here and used it to light a fire for warmth. After they were rescued they reported the presence of coal and Governor Hunter sent George Bass to investigate. Bass found several seams that extended for some distance and conjectured that they might extend throughout the range.
The Illawarra coal seams had been observed at Coalcliff as early as 1797. However, a new monopoly on coal production at a Newcastle company prevented the development of a coal industry before 1848, when the monopoly was lifted.
Coalcliff at the time was the nearest mine to Sydney by more than twenty miles. The tunnelling operations of the Coalcliff Mining Company began in 1877 and was officially opened in 1878.