The Mobile City Council opted, with a 6-1 vote, to delay a verdict regarding an appeal for the decision to allow the coal terminal to go ahead.

The decision came after the government plaza was bombarded with both anti and pro-coal advocates for a hearing about the appeal. The council released a statement which said the issue was a complex one and more time was needed to come to an agreement.

The terminal is part of Birmingham-based Walter Energy's plans to expand its operations in Alabama.

The company was awarded tax credits by the Alabama legislature in 2012 for a massive $US1.2 billion ($A1.28 billion) project focused in Tuscaloosa County.

The plans to build the coal terminal have proved controversial in the town of Mobile, were many residents had concerns over potential damage to air quality.

Walter Energy officials have since defended the project, insisting they have adopted state of the art technologies in order to eliminate any issues of poor air quality.

An air pollution analysis, employed by Walter Energy, said that with all proposed measures in place, the terminal will have no damaging affects to the local area.

Attorney Greg Vaughan told local media he was concerned with Walter Energy's track record in its hometown of Birmingham.

He said that the company allegedly used street sweepers to clean properties near its facilities, as part of a class action lawsuit, following an EPA investigation into the effect of industries on the northern part of the city.

Walter Energy officials have since hit back saying that the Birmingham issue is "apples and oranges" with Mobile.

In Birmingham, the company was lumped together with other industries as part of an overall complaint, a company spokesman said.