Hume Coal, which had sought to explore for coal in the exclusive Southern Highlands of NSW, said it would not challenge the ruling but urged the state government to clear up law that was now in disarray. "It's now a matter of urgency and up to the state government to take this issue seriously and implement changes to the legislation which clarify the rights of landowners, explorers and ultimately investors in NSW," said Hume Coal project director Greig Duncan. Hume's decision to concede defeat over the matter comes after both the national and NSW divisions of the Minerals Council indicated earlier this month they would not challenge the ruling. Neither major political party in NSW has shown an appetite to fight the ruling, in the latest sign that the mining and energy industries are increasingly friendless in NSW. NSW Resources and Energy Minister Anthony Roberts declined to comment in the wake of the ruling on May 10, and he could not be reached for comment on Sunday.

But a spokeswoman for the NSW department of industry said the government was working on legislation to clarify where drilling can and cannot be conducted. "While the government acknowledges the recent decision in the matter of the Southern Highland landholders versus Hume Coal, we cannot comment on the specific facts of the recent court case as it has been sent back to the commissioner for further consideration," said the spokeswoman. "The government has been reforming land access legislation during the past three years with the goal of providing a more transparent system for both land holders and explorers." The reluctance to fight the ruling comes as major miners like Rio Tinto and Anglo American have sought to sell their NSW and Queensland coal assets, and after some coal mine expansions in NSW were rejected because of their possible impacts on horse studs in the Hunter Valley. It also follows strong opposition to coal seam gas extraction in NSW over the past decade.

Mr Duncan noted that a review of the Mining Act in 2014 had recommended that the Act be altered to ensure that landowners could not unreasonably withhold consent to access and drill property. "If government are looking for investment in NSW to continue, they must address the legislation with a matter of urgency," said Hume Coal in its statement. Hume Coal, which is 100 per cent owned by Korean steel giant POSCO, said the ruling would not prevent its mine proposal from going ahead, and the company plans to submit the environmental impact statement to the NSW government before Christmas. Prominent radio broadcaster Alan Jones, who has owned property in the Southern Highlands for many years, told Fairfax Media earlier this month that Justice Preston's ruling was a triumph for the residents of the Southern Highlands. "It is a significant triumph for people who are prepared to hang in. But it's always a mystery to me how these people get a licence in the first place," said Mr Jones, in an email to Fairfax Media earlier this month.