The Anvil Hill Project Watch Association seeks to have environmental conditions placed on the mine and have the project declared a controlled action under the Environmental Protection and Biodiversity Act.

The group lost its bid to have the mine's approval reviewed after it appealed to the Federal Court in September, claiming federal Environment Minister Malcolm Turnbull had not considered the impact of the mine on climate change when granting its development plans.

Upon hearing of the court ruling the association vowed to seek legal advice and consider appealing the decision, adamant that the mine should fall under the Act guidelines.

"It is outrageous in today's world and scientific knowledge that a coal mine does not automatically trigger the EPBC Act," said AHPWA president Christine Phelps.

"It is an environmental protection Act and already recognises anthropogenic climate change as a key threatening process and a major cause of habitat loss."

It is the second legal battle launched this week against Xstrata, with the Queensland Supreme Court ordering a rehearing of a case against the mining company from the Queensland Conservation Council over development plans for its Newlands Wollombi mine expansion.

The QCC claims the expansion plans should be subject to greenhouse gas emissions conditions before being approved.