WESTERN Australia's Environment Minister yesterday rejected an application to develop a black coal operation in the Margaret River wine region.

Bill Marmion said he was upholding a recommendation by the Environmental Protection Authority against a black-coal mine 12 kilometres north-east of the town.

Bill Marmion says the proposed operation poses significant risk to two aquifiers. Credit:Erin Jonasson

The Vasse Coal Project is owned by partners Vasse Coal and South West Coal, which engaged LD Operations to manage the approvals process.

LDO managing director Peter Ross said Mr Marmion's decision went against the advice of government agencies and independent experts that further information was needed before the proposal's environmental acceptability could be determined.

''LDO respectfully believes the minister's decision supports a flawed assessment process, [and] apparent dismissal of available evidence from government agencies and independent experts,'' Mr Ross said.

Mr Marmion said the proposed mine posed significant risk to two aquifers. ''Margaret River is a unique area in terms of the environment and this government does support the precious Margaret River region.''