The submission by Xstrata to develop a new opencut operation at the site was disputed by the QCC in the Land and Resources Tribunal - it insisted that emissions from the mining, transport and use of coal from the mine must be limited and controlled through imposing conditions.

In February this year the expansion plans were endorsed by the tribunal without the QCC's suggested conditions and given the go-ahead.

The case will now be reheard in court but Queensland Premier Anna Bligh has stepped in to ensure operations at the opencut mine will not be affected.

Bligh said her government will legislate next week to guarantee operations at the mine while the case is reheard.

"We will protect the mine's 190 jobs and the investment in the mine," said Bligh.

"The coal industry is central to the Queensland economy and we will not allow a technicality to threaten its development and jobs."

While she insisted the Queensland Government is a strong supporter of clean coal initiatives, she said the industry must be protected.

"We need to strike the right balance between the needs of the Queensland economy, the environment and the jobs of the 18,500 men and women, and their families, who work in the Queensland coal industry," Bligh said.

"There is no doubt the coal industry needs to combat greenhouse gas emissions and that is why the Government and industry are investing heavily in clean coal technology.

"The Queensland Government is also a strong backer of a national emission trading scheme.

"We believe that such a scheme is the appropriate way to manage emissions rather than an ad hoc approach which singles out particular companies."