The latest court challenge by environmentalists against proposed coal mining on the West Coast's Denniston plateau has found in favour of mine developer Bathurst Resources.
However, with appeals and challenges ahead, Forest and Bird contends it still has a strong case to put before the Environment Court.
In the High Court at Christchurch, Justice John Fogarty yesterday rejected an appeal by Forest and Bird against the Environment Court's earlier, preliminary decision not to consider the cumulative impact of Bathurst's mining proposal, and also a separate Solid Energy permit for another site.
Bathurst shares, which earlier this week had hovered just over its 18c year-low, were placed on a trading halt soon after noon yesterday. Bathurst is almost two years behind schedule to begin ramping up its mining operations, which would eventually produce four million tonnes of coal a year.
Last month, the Minister of Conservation gave Bathurst permission to mine the plateau, which environmentalists claim has irreplaceable bio-diversity, a day before new legislation would have required the proposal go out for public submissions.
Forest and Bird top of the south field officer Debs Martin said she was disappointed with the decision by the High Court.
''While we may have lost on this one point, we still have a very strong case in the Environment Court to save the plateau,'' Ms Martin said in a statement.
Bathurst and Forest and Bird returns to the Environment Court next Wednesday to offer proposed, new and modified mining conditions for the court to consider. Separately, the Supreme Court is next expected to release its decision on climate-change issues having been excluded from being heard in resource consent hearings.
Ms Martin said Justice Fogarty was expected to announce a decision today on further points appealed in the High Court.