"The minister for planning and Moolarben have both been served with an application in class 4 of the Land and Environment Court of NSW seeking a declaration that the minister for planning's approval on September 7, 2007 for the Moolarben Project is void, invalid and of no effect," Felix announced yesterday.

The action will run parallel to an appeal launched by Xstrata on November 23 in the New South Wales Supreme Court against a decision that Xstrata had no case against Felix.

The mining giant attempted to stop Felix from mining part of its tenement that it claims would interfere with the environmental obligations of its nearby Ulan complex.

The Government and Felix Resources were awarded costs against Ulan after the NSW Supreme Court ruled in their favour.

Felix directors said they were disappointed that Xstrata - with joint venture partner Mitsubishi - had launched the action but said it would be vigorously defended.

They added that they were yet to receive particulars regarding the hearing of the appeal case.