An investigation into the mechanics of sub-surface deformation caused by caving of the extracted area behind retreating longwall faces has been completed by the Subsidence Engineering Section of the New South Wales (NSW) Department of Minerals and Energy. Changes in strata bulk permeability were also measured by standard packer tests undertaken before and after mining. The strata movement was measured by a multi-wire borehole instrumentation system consisting of mechanical anchors installed at different horizons in a borehole extending from the surface to the coal seam. The mechanical anchors were collected to suspended weights on the surface by stainless steel multi-strand wires. The movement of these weights was monitored as the longwall face approached and retreated past the borehole. The anchors did not move significantly until the face went past the borehole. For subcritical extraction geometry with the extraction width to mining depth ratio of 124, the caving zone extended to roughly 9 times the extracted seam thickness above the seam roof. Tensile strains within the overburden tended to be much more closely related to stratigraphy than to the proximity to the extracted seam roof. Larger tensile strains were associated with layers of sandstone, siltstone and conglomerate, whereas layers of mudstones, claystones and coal underwent much smaller strains indicating subsidence in blocks. A beller correlation was observed between pre-mining Rock Quality Designation and permeability than between rock type and permeability. This correlation was less evident in the post-mining core logs. There was an overall increase in bulk permeability after mining.