A heartbreaking incident in an outback town has left two people dead and another in hospital after an underground mine explosion.

Emergency services were called in response to the disaster at Cobar, in northwest NSW, about 3.45am on Tuesday.

Police were immediately told one man had been confirmed dead after the explosion.

Two women were then brought to the surface, but one of them died shortly after.

The second woman was airlifted to hospital suffering hearing damage and shock.

Police confirmed the deaths several hours after the incident and said emergency services remained at the scene.

Premier Chris Minns said it was a heartbreaking day for the Cobar community and the tragedy would be felt across the entire mining industry.

"The number-one priority in any mine must be safety … eve

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