A NSW mining lease application has been withdrawn by Moolarben Coal Operations despite gaining land approvals from the Department of Planning.
The leasing application for the small 22-hectare triangle of land, 40kms north-east of Mudgee, has been removed subject to boundary adjustments.
Felix Resources said it had never intended to mine on the parcel of land although it is within the Stage 1 project boundary approved by the Department of Planning.
According to Felix, the withdrawal is only a boundary adjustment and there is no change to the proposed underground mine plan.
The project has come under fire from activists and environmental groups for damaging wildlife within the nearby National Park and Goulburn River.
However, two additional exploration licences were granted in February 2008 following a series of environmental studies and surveys.
Stage 1 of Moolarben was approved by the Department of Planning in September 2007 and construction began in February this year.
The development will bring the number of open cut pits to four and add another two underground mines to the site.