Australia halted logging in a large stretch of woodland on the country's eastern coast Sunday to create a retreat for koalas and save the local population from extinction.

The New South Wales government imposed a ban effective from Monday on logging across 176,000 hectares (435,000 acres) of forest on the state's north coast for a Great Koala National Park, hitting six timber mills and about 300 workers.

Without action, it warned that koalas in Australia's most populous state could die off by 2050.

Environmentalists say koala numbers in New South Wales have suffered a dramatic decline in recent decades due to deforestation, drought and bushfires.

"Koalas are at risk of extinction in the wild in NSW -- that's unthinkable. The Great Koala National Park is about turning that around," said

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