Justice Preston ruled that fields with crops or equestrian facilities were the product of labour and could therefore be regarded as “significant improvements”

“I find that the Commissioner did err on a question of law in deciding that paddocks with improved pastures or lucerne can never be significant improvements,” he said in the ruling.

Hume Coal, which is 100% owned by Korean steel giant POSCO, has already been exploring for coal since 2011 and during this time it has drilled 139 boreholes, with all drilling sites being rehabilitated to their original condition or converted to a groundwater monitoring asset, project director Greig Duncan said.

“Prior to commencing exploration in this region, Hume Coal was mindful of the setting in which we are operating, therefore much time and design was invested into producing a drilling program, which had little to no impact on the current land use,” he said.

To further strengthen the sustainability of Hume’s exploration program, a local drilling company was engaged, who not only had an in-depth understanding of the local environment, but had also drilled numerous water bores throughout the Southern Highlands.

Hume Coal has always undertaken its exploration activities and rehabilitation in accordance with its Approval Conditions and the approved Review of Environmental Factors (REF), despite numerous court challenges and unsubstantiated accusations, by local groups, Duncan said.

The Land and Environment Court’s ruling on Section 31 of the Mining Act will now have severe ramifications for mining and exploration in NSW, not only limited to coal in the Southern Highlands, but across all NSW commodities and potentially sterilising highly valued and essential resources.

“It is now up to the NSW state government to review the land access laws and regulations, so that the exploration industry can continue to progress opportunities, employment and the economy for the people of New South Wales,” he said.

“Despite the unfavourable ruling, Hume Coal is focused on continuing down the approval path and delivering its low-impact mining project which has been designed to preserve and protect the region for future generations. We are continuing to progress the Environmental Impact Statement (EIS), due to be released later this year.”

Anti-coal campaigner Peter Martin said: “This is an incredibly significant decision for landholders right across NSW whose land sits above a coal deposit. It means that we have the right to reject coal exploration which will damage significant improvements on our land.

“We believe this will be the death knell for their ill-considered mining project, which is completely inappropriate in a key part of Sydney's drinking water catchment and one of the most historic and picturesque parts of NSW.”