On November 16, the New South Wales Supreme Court ordered Xstrata had no case against Felix after the company attempted to stop Felix from mining part of its tenement that it claims would interfere with the environmental obligations of its nearby Ulan complex.

However, the case will return before the Supreme Court after Ulan Coal Mines lodged an appeal on Friday.

In a letter to shareholders on Friday, Felix Resources said it was confident the case was without merit and that it would vigorously defend its position again.