The controversial phoney media release by Jonathan Moylan and the Front Line Action on Coal – which said the ANZ bank would be withdrawing $1.2 billion in credit for the Maules Creek coal project in New South Wales – triggered a $314 million plunge in Whitehaven’s market capitalisation on Monday and confusion among its shareholders before a trading halt was called.

Yesterday, Milne praised Moylan for protesting against an organisation that was “bankrolling” coal mining.

“We're in the midst of a climate emergency and Jonathan Moylan is standing up for what he believes in and for making the point that if you continue to bankroll new coal mines and coal exports then you're actually driving global warming with the catastrophic consequences for human kind,” she told 7.30.

Milne’s comments incensed Vaile, who was formerly the National Party leader and a minister in the Howard government.

“To have someone that has the respect of the electorate across Australia in high political office [Milne] be prepared to go out and support fraudulent and arguably illegal activity like this beggars belief,” he said.

“We see it as our responsibility on behalf of our shareholders, many of whom may have suffered some material loss because of this exercise on Monday, to pursue a number of different avenues and of course the primary focus should be the regulator, that is ASIC, in looking at what they can do as far as the corporations law is concerned.”

ASIC commissioner Greg Tanzer told 7.30 the penalties that could apply were severe and reflected the importance of market integrity to the Australian economy as a whole.

“So if you convicted of an offence of disseminating false or misleading information to the market that could impact on market securities, that carries very substantial penalties, fines of up to nearly $500,000 and a potential term of imprisonment of up to 10 years,” he said.

Moylan apologised to shareholders for the impact of his phony news release.

“I certainly don't, didn't, intend any harm to shareholders in Whitehaven and, you know, for the record I do apologise,” he said.

“But I won't apologise for exposing ANZ's dirty investments in Whitehaven Coal.”

Vaile said Whitehaven had been complying with every regulation and had approval from the New South Wales government. It now awaits final federal government approval.