PPB Advisory spokesman Stephen Longley told the ABC the sale or closure of the mine were options being considered by the company.

“Our preferred focus is a restructure with existing shareholders, but options we're exploring do include the selling of all or any of the company's assets,” Longley reportedly said.

“It's in the company's best interest to continue operating,” he said, adding the company wanted "to find the best outcome for creditors and stakeholders”

Longley also told the ABC that it was preferable to keep the mine operating regardless of its operators, because increasing production was an important part of keeping the project viable.

Cockatoo’s amendment application for an environmental authority (EA) related to the proposed expansion of the existing Baralaba coal mine, which is located about 5 km north of the township of Baralaba.

The existing EA allows for extraction of coal up to 1 million tonnes per annum of run-of-mine coal. The proposed Baralaba North continued operations project contemplates expanding production to 3.5Mtpa.

This is part of the Baralaba Expansion Project, a prescribed project under the State Development and Public Works Organisation Act 1971. The project includes a new Train Loadout Facility (TLOF). Coal would be trucked to this point.

“The consideration of the evidence presented leads to the conclusion that the draft environmental authority sufficiently addresses the risks to the environment,” the Court said in its judgement.

“The evidence does not support a conclusion that Cockatoo Coal Limited does not have the financial or technical capabilities required. The applicant companies are in administration but a restructure is, on the evidence, reasonably likely to be put in place to allow the present condition to be remedied.

“The evidence is that, due to the financial assurance scheme, it is not likely that costs and responsibilities of site remediation would be borne by the state.

“The existence of the financial assurance scheme causes arrangements for remediation of abandoned mines at public expense to be of little if any significance.”