The Australian Financial Review reported that BHP Billiton Limited faces a legal challenge from a farming group in an attempt to stop a new large coal development in north west New South Wales.

As per report, farmers from the Liverpool Plains in NSW, calling themselves the Caroona Coal Action Group, hope to exploit a loophole in the law, claiming that the exploration licence granted to BHP was invalid as the rights were given to it outright rather than simply transferred to the company.

BHP, who paid USD 100 million for the rights in 2006, claims the licence was a partial transfer of a previous exploration area. The case, before the NSW Land and Environment Court, is the latest step in a long running saga between miners and locals, who fear development of the coalfields could damage aquifers in the region.

Land owner Mr Timothy Duddy told the court that the NSW state government had not followed its own procedures when issuing the permit. He added that "Everything's been done in haste because everyone gets so blinded by the amount of cash."

(Sourced from Australian Financial Review)