The decision follows the Environmental Protection Authority advice that indicated coal mining in the area posed an unacceptable environmental risk.

Based on that advice the government rejected the 1.2 million tonne per annum Vasse coal proposal in February.

There are four coal applications live within the region to be terminated or refused. Five other applications have been withdrawn by applicants.

There are nine granted mineral titles within this zone, including the seven granted Vasse mining leases.

However, if any of those title holders lodge a coal mining proposal it will be refused on the grounds of potential groundwater impacts.

Vasse coal had proposed a bord and pillar mining operation about 160-500 metres underground.

The mine was to be about 15 kilometres from the Margaret River town. The tenement covered 80sq.km, including land beneath the river that gives the region its name.

WA Mines Minister Norman Moore said the government had decided the EPA advice should be applied to the whole of the coal mineralisation extending through the identified 230sq.km zone.

“This decision sends a signal to the industry – applications will not be accepted to explore for or to mine coal in this area,” he said.

Under the Mining Act 1978 the minister can terminate or refuse applications if they are satisfied on reasonable grounds that it is in the public interest to do so.

This provision will be invoked if explorers prove unwilling to withdraw their coal applications.

“I would emphasise that this decision is based on unique and local circumstances existing only in the Capes region,” Moore said.

He said the decision was aimed at giving Margaret River residents certainty without adding “unnecessary sovereign risk” to the state’s $107 billion resources sector.