The operators of the Moolarben Coal Project near Mudgee said that an amendment to the Mining Act clears the way for development of the mine to begin.

An appeal by the neighboring Ulan Coal Mine has delayed the start of construction on the USD 405 million project. The Court of Appeals has upheld an appeal of the development consent, but the court is yet to make orders.

Amendments to the Mining Act put forward in response to the judgment were passed in the Upper House of Parliament this week.

Felix Resources the operators of Moolarben said the bill will validate its mining leases and it can now proceed with development of the mine once affected land holders are paid compensation.

Mr Brian Flannery MD of Felix Resources said that the government's response has restored certainty to mining leases placed at risk by the court's decision.