A Broken Hill mining company has appealed a decision by the Supreme Court that ordered it to pay $2.5 million in underpaid rates to the local council.
Cristal Mining was ordered to pay the money in August last year after the court found it had underpaid rates for the Ginkgo mine near Broken Hill.
The hearing centred around who should repair roads used by the mining company, with the court finding in favour of Wentworth Shire Council.
However the case will head back to court in April after Cristal Mining launched an appeal it says seeks to clarify the guidelines around working with local councils.
Cristal Mining east operations manager Chris Reynolds told the ABC the company wanted assurances over future agreements it planned to negotiate with the council.
"We want further clarification from the courts in relation to how local governments deal with these in the future," he said.
"And consequently we've lodged the appeal, mainly to get a clearer picture of the rights and responsibilities of councils when negotiating rates, particularly with larger projects."
Mayor Don McKinnon says he is angry the company has lodged an appeal, claiming essential services and upgrades will be deferred until the matter is resolved.
McKinnon has called on the state government to help local councils, stating it faces mounting legal costs that could run into the millions.
"The State Government has been no benefit at all in this, because they're the ones that get the direct royalties from the mines," he said.
"We would like to see a similar situation like in Western Australia where there's royalties for regions, something like that would help us all get along together.
McKinnon said the legal dispute should come a warning to other local councils when negotiating agreements with mining companies.
"I'd just say to any other shires be very careful when somebody comes to you and says we're going to have a mine in your area," he said.
"Work out your road maintenance agreements before you start because it will be a cost on your community.
"Your community will suffer because we can't go ahead with those parks, toilets, boat ramps, all those sorts of things that our community rely and sports areas."
Image: cristal.com