The Federal Court has put national endangered species conservation first in a decision that fuels a bitter divide over mining in Tasmania's Tarkine region.

The court said former Environment Minister, Tony Burke, made a "fatal" error in approving Shree Minerals' mine, when he did not giving enough consideration to official conservation advice on the endangered Tasmanian devil.

Tasmania's Tarkine Forest. Credit:Tourism Tasmania

Justice Shane Marshall's decision in Melbourne to invalidate the approval was claimed as a victory by green groups advocating protection of the wild, highly-mineralised region in north-west Tasmania.

Save the Tarkine patron Bob Brown said new Environment Minister Mark Butler should overturn Mr Burke's decision against listing the area as national heritage.