The announcement was welcomed by Felix managing director Brian Flannery who has been scathing throughout the court proceedings.

“We are encouraged that the state government is looking at preserving the rights of mining companies, and certainly for landholders that will help avoid costly litigation,” Flannery said.

The move follows a recent decision in the NSW Court of Appeal which earlier this month ruled in favour of Ulan Coal Mines, majority held by Xstrata, over its objections on the validity of Felix’s mining leases.

The NSW government granted mining leases to Felix’s Moolarben Coal Mines in December 2007.

Felix is seeking further clarification from the government on how the announcement will impact on today’s deadline for submissions on the Court of Appeal judgement.

NSW Primary Industries and Mineral Resources Minister Ian Macdonald said amendments to the act would be introduced in parliament to give clarity to leaseholders.

“These amendments will provide certainty for mining companies and certainty for landholders,” Macdonald said.

“The aim is to streamline the process and avoid lengthy unnecessary court battles.

“It will help all affected by the granting of mining leases and ensure courts are not tied up in unnecessary litigation.”

This week Felix announced its “best year by far” posting a net profit after tax of $188.5 million and an increase in sales tonnages of 24% to 4.6 million tonnes.