Angry Wollongong Coal shareholders have fronted the company's annual general meeting.

Environmentalists and residents holding placards reading "water not coal" protested outside the company's AGM in Towradgi on Friday.

Many shareholders declined to talk as they entered the meeting through the group of protesters, who called for the cancellation of the company's rights to mine.

Robert Tracey is a lawyer who was there to represent a shareholder.

"We've read the annual report, we've got a lot of questions," Mr Tracey said.

"How could you be happy with what you're reading?", he says.

Arvind Prasad from minority investor JP Morgan was among those looking for answers.

"We are equally concerned, and we are going to voice our concern," Mr Prasad says.

"I don't know the entire picture but whatever I know, we are going to voice our concern as a minority shareholder."

Wollongong Coal CEO Milind Oza was asked whether the company is fit to run a mine, as is being questioned by anti mining group Lock the Gate Alliance, which is asking the NSW Government to cancel its mining rights.

"I will answer all the questions but right now I am here for the AGM, if you have any questions send them to me I will have all the questions answered," Mr Oza told the ABC.

Nic Clyde from the anti mining group Lock the Gate spoke to protesters about the bill for damage to upland swamps which would be caused by the Russell Vale expansion.

"The damage is about $25 million, the likely damage, and I note in the most recent paper work from the company, the minimum royalty payment to the people of NSW is $23 million," Mr Clyde says.

"So fewer royalties than what the government itself has costed the damage of this project to be."

Wollongong Coal remains suspended from trading and owes the state of NSW more than $3.5 million dollars in unpaid royalties.

The company was issued with statutory demands from the Department of Trade and Investment and is understood to have made arrangements to pay the amount.

Information about the unpaid amount of $3.6 million in royalties is detailed in Wollongong Coal's annual report for the period ending March 2015.

The report was prepared and tabled months late in breach of Australian Securities Exchange reporting rules.

No company 'less deserving of being listed in the Australian Stockmarket'

A mining economics expert at the protest outside the AGM says Wollongong Coal does not deserve to be listed in the Australia stock market.

Tim Buckley is the Director of the Institute for Energy Economics and Financial Analysis Australasia.

Mr Buckley says there is no future for the company unless it gets a massive financial bail out from its parent Indian company Jindal Steel.

"It's hard to find a company less deserving of being listed in the Australian stock market, Mr Buckley says.

"The auditors are unable to sign the accounts saying the company is a going concern, the current liabilities are well in excess of the current assets, the company closed its last mine six weeks ago so they have no revenue, no profit and ability to pay their interest," he says.

Mr Buckley believes the company's plans to expand the Russell Vale mine should be rejected.

"I think that should be absolute front and centre of the NSW state government," he says.

"It is absolutely ludicrous that they would be contemplating approving any mine for this company."

"Do they have the technical capacity, do they have the financial capacity to actually deliver on what they are saying."

New legal bid launched to shut down mining company

The Environmental Defenders Office is taking action on behalf of anti mining group Lock the Gate Alliance to have the company's mining rights cancelled or suspended.

The EDO has written to the Minister for Industry, Resources and Energy Anthony Roberts arguing that Wollongong Coal does not meet the 'fit and proper person' test and urging him to use his ministerial power.

The test is part of mining laws brought in by the O'Farrell Government.

Principal Solicitor at the EDO Sue Higginson says there is significant evidence that Wollongong Coal is unfit to run a mine and in 'terminal financial distress'.

She says the company has suffered significant losses in the last two years and has a 'revolving door of senior management'

"We are talking about very sensitive environments with these unique environmental constraints such as upland swamps that are listed under out national environmental laws," Ms Higginson says.

"We really need absolutely A grade operators in these types of environments so it is a very important question that our client is putting before the minister."

Records of non-compliance in Australia and overseas by Wollongong Coal's parent companies Jindal Steel and Power Limited and Jindal Steel and Power Mauritius in Australia and overseas must also be investigated by Mr Roberts, Ms Higginson says.

"Those companies has what is fair to say some dubious questions about the compliance with environmental laws and regulations and criminal laws and regulation, particularly in India aswell as in Mozambique."

She says there is evidence to suggest Jindal Steel operated a mine in Mozambique without an environmental impact statement in violation of that country's law.

The ABC is seeking a response from Wollongong Coal on the outcome of today's AGM.