Tougher penalties for illegal asbestos disposal could be rolled out after the discovery of the potentially dangerous substance near a playground and other sites across Sydney.
NSW Environment Minister Penny Sharpe said the state government was looking at raising penalties to deter businesses from dumping the material.
"I think the penalties issue is a really big one," she told ABC Radio on Friday.
"It's actually something that the government is looking at more generally.
"We haven't actually raised a lot of penalties for many years.
"And for some businesses, you don't want it just to become the cost of doing business - their willingness to do the wrong thing."
Fines of up to $7500 for individuals and $15,000 for companies apply for those found illegally disposing of asbestos waste in NSW, although the sums can stretch to $1 million if cases are heard in court.
The widespread presence of asbestos in building materials has re-emerged as an issue after bonded asbestos was found in recycled mulch at the recently opened Rozelle Parklands, in Sydney's inner west, in January.
The park, above a controversial underground motorway interchange, was shut only a few weeks after its public opening when asbestos was found at multiple locations.
Ms Sharpe said Environment Protection Authority staff were trying to work out how the asbestos got into the park mulch.
"What they're really focusing on is working through the supply chain ... working out how it got in there and how far it's dispersed," she said.
Prevention notices had been sent to suppliers and distributors of the mulch, Ms Sharpe added.
Since the initial asbestos discovery, similar contaminated samples have been detected at multiple sites in Sydney and on the NSW south coast.
Bonded asbestos is considered a lower risk to the public than friable asbestos, but it can weaken and have the potential to turn into powder as it ages and is exposed to the elements.
Ms Sharpe said she was also open to considering cheaper disposal options for the material.
"I'm willing to look at anything," she said.
"We just don't want asbestos out and about and we don't want people avoiding proper disposal."
Disposing of the building material can be expensive and those wishing to do so should hire a licensed removalist, according to the government's asbestos website.
Asbestos was a popular building material until the late 1980s.
Its fibres and dust can lead to chronic illness including mesothelioma when inhaled.
