While the Mining Act gives a licence holder exploration rights on private property, the recent court decision brings extra hurdles and uncertainty to mining companies who plan to drill in the state.

Judge Monika Schmidt found the banks were also landholders over the concerned properties and BHP subsidiary Coal Mines Australia did not consult or give the banks notice to access the land in order to drill it.

Given the varying landowners across the state, NSW Minerals Council chief executive officer Dr Nikki Williams said the decision would have an extraordinary impact on business activity.

“This is not a victory for landowner property rights as some are claiming,” she said.

“This decision will not achieve better environmental outcomes. It will not improve the interaction of exploration activity with agricultural land.”

Williams is concerned about the extra layer of consultation that will be required for exploration.

“The effects of this decision will set off a chain reaction reaching far beyond the mining industry. No one will be immune.

“Red tape will wrap itself around every bank, building society, water supplier, gas network supplier, electricity distributer and telecommunications provider.

“Each of these entities will need to establish a new layer of administration, just so they can fulfil their obligation to comply with the judgement.”

Using an example, she said one small mining project in the state was negotiating more than 60 access agreements.

“That’s 60 land holders multiplied by all the banks and any party that has a financial interest in the property, as well as each of the utility companies that have easements for access to infrastructure,” Williams said.

“So instead of negotiating with 60 parties, we’re now talking about hundreds of negotiations for a single project.”

Williams said the major state parties and businesses should be very worried and needed to take action.