Port Waratah Coal Services, majority owned by giants Xstrata and Rio Tinto, appealed to the Australian Competition and Consumer Commission for a new system for port allocations to be introduced from next year.

The current vessel queue management system is set to expire on December 31, opening up an opportunity for a review of the way mining companies are allocated access to export infrastructure.

Tripodi said a submission made to the ACCC from PWCS and rail operators Pacific Rail and Queensland Rail would stop smaller producers from being able to export coal and have a negative effect on the economy.

"We've looked at the PWCS proposal and our position is clear ... it would violate the lease requiring open access to the industry-owned coal loader," Tripodi said.

"This proposal could see mine closures and the loss of Hunter jobs through changing longstanding arrangements guaranteeing all coal producers access to loading facilities at the port.

"The NSW Government will not prioritise the interests of any individual company ahead of the state economy.

"It is critical that all producers have access to the industry-owned loader."

To allow more time to consider the proposal the Newcastle Port Corporation has proposed an interim arrangement, which is also pending ACCC approval.

What is clear, however, is that without a long-term solution the battle for allocations will continue, with both sides of the spectrum threatening job losses.

According to a report in the Australian, an Xstrata spokesperson said the mining giant stands to lose out if the system is not changed in its favour and that it is unfair to allocate fairly to all companies, some which have yet to cement rail deals.

Smaller miners will certainly suffer heavily if the PWCS proposal gets the stamp of approval, as they are likely to have little or no allocation.

Capacity issues are expected to be relieved when port capacity is boosted from 102 million tonnes per annum to 113Mtpa from 2009.