The company proposing a controversial open cut coal mine for New South Wales' Manning Valley, refused by an environment court in February on the grounds of its contribution to climate change, will not appeal the decision.

Key points: Gloucester Resources will not appeal a decision by the NSW Land and Environment Court refusing a coal mine near Gloucester

Gloucester Resources will not appeal a decision by the NSW Land and Environment Court refusing a coal mine near Gloucester Rocky Hill mine's contribution to climate change was cited as one of the key reasons for refusing the application

Rocky Hill mine's contribution to climate change was cited as one of the key reasons for refusing the application Gloucester says it will explore other options in the area, which residents say is "a waste of good money" after the judgement

The NSW Land and Environment Court handed down the landmark judgement in February, confirming a decision to refuse the new mine near Gloucester on the mid-north coast.

Gloucester Resources Limited has announced it would not appeal, and said in a statement that it would now carry out further assessment of its current exploration licences in the area.

Julie Lyford from the local activist group Groundswell Gloucester said the town was thrilled that the mine would not go ahead.

"It's over. The township is ecstatic and we do need to move on," she said.

"83 per cent of the Gloucester community and the Manning Valley actually didn't want this mine."

Members of the community group Groundswell Gloucester attended the hearing in Sydney earlier this year. ( ABC News: Meredith Griffiths )

Ms Lyford said it does not make sense for the company to now push to explore other options in the area further.

"To think that you [could] open up small, new coal mines in this area — after this particular judgement — would seem to be a waste of good money," she said.

'Hole in the economy'

Dairy farmer and chair of Advance Gloucester, Bill Williams, is disappointed about the decision.

He leads a group of farmers and business owners saying anti-mining protestors are not truly reflecting the wishes of the local Gloucester community.

Why Rocky Hill 'hugely significant' In February 2019, Chief Judge Brian Preston of the NSW Land and Environment Court handed down a landmark judgement confirming a decision to refuse a new open-cut coal mine near Gloucester in the Hunter Valley. The proposed Rocky Hill mine's contribution to climate change was one of the key reasons cited for refusing the application … thus potentially opening up a new chapter in Australia's climate litigation history. As Judge Preston concluded: "An open-cut coal mine in this part of the Gloucester valley would be in the wrong place at the wrong time … the GHG emissions of the coal mine and its coal product will increase global total concentrations of GHGs at a time when what is now urgently needed, in order to meet generally agreed climate targets, is a rapid and deep decrease in GHG emissions." Source: Justine Bell-James, excerpt from Landmark Rocky Hill ruling could pave the way for more courts to choose climate over coal

"Rocky Hill's dead in the water. To be honest I wasn't surprised that they didn't appeal the decision," Mr Williams said.

"It's going to leave a hole in the economy because there was a lot of people out there that were in favour of the project going forward.

"A lot of people, too, were very reserved to endorse it."

Mr Williams said there had to be a way forward for the small town because tourism was not going to save the economy.

"Mining and agriculture can co-exist," Mr Williams said.

"It's co-existed in the Stratford now for 20-odd years so it's nothing new to the area, and actually Yancoal is closer to Stratford than what the Rocky Hill project was going to be to Gloucester."

Dropped appeal 'bittersweet'

Another member of the community group against the Rocky Hill mine project said it was "bittersweet" the company would not pursue appeal options.

Groundswell Gloucester's John Watts said locals are relieved.

"There's been so much heartbreak with so many people fighting against the action — this ill-considered idea — and it's such good news. But it's bittersweet because people have suffered so much."