A central Queensland coal mine has been told it needs to reduce its greenhouse gas emissions if it wants to expand its mining lease.

The owners of the Ensham coal mine, an underground project 35 kilometres east of Emerald, are seeking a 25-year extension on its mining lease.

The mine, which produces thermal coal to generate electricity, has a 14-year life estimate with current permits until 2028 when a new lease is required.

The Queensland Land Court handed down its recommendation last week that the thermal coal mine's lease should not continue unless it could prove it was cutting greenhouse gas emissions.

The final decision on whether to approve the lease now sits with Mines and Resources Minister Dale Last who is "carefully considering" the case.

Mine operators Sungela Pty Ltd and Bowen Investment Pty Ltd have been contacted for comment.

The underground operation produces 4.5 million tonnes of thermal coal every year.

The judgement from Land Court president Peta Stilgoe said emissions from the project would "contribute to climate change directly and indirectly".

Ms Stilgoe said there was no evidence the company had progressed a mitigation strategy to reduce emissions or prioritised energy efficiency.

"The mining lease area may only be small part of the greenhouse gas emissions scenario, but it is still a part," she said.

Sungela has operated the Ensham Mine since Japanese oil giant Idemitsu sold off its 85 per cent stake in August 2023.

The court documents note Sungela had "good environmental records" and "no systematic or ongoing breaches of environmental laws".

Nationwide implications

Ella Vines, a postdoctoral research fellow at Monash University who is researching legal frameworks to reach net-zero, said the Land Court's recommendations could have implications for mine expansions across Australia.

She said it was only the second time the Queensland Land Court recommended the government refuse a mining lease on environmental grounds.

The first was in 2022 and involved the Waratah Galilee Coal Mine in outback Queensland.

The outcome saw state authorities scrap the project.

"It's very rare for Land Courts to reject mine expansions," Dr Vines said.

She said she was concerned the minister would allow the mine to purchase carbon offsets as a mitigation effort.

"Emissions of a coal mine are only reducible by not mining coal," Dr Vines said.

'Activist lawfare'

The Queensland Resources Council (QRC) said it was concerned about the broader impacts of the decision given "the mine proponents had received the necessary state government environmental approvals".

Chief executive officer Janette Hewson said the QRC wanted all levels of government to simplify the complicated approval process.

"Duplicative approvals processes add delays and opens up mining applications and amendments to activist lawfare," Ms Hewson said.

In making its decision the Land Court considered three objections.

Ms Hewson said the objectors were not nearby landholders and did not submit evidence or physically attend the hearing in Brisbane.

Coral Rowston from the not-for-profit group Environmental Advocacy in Central Queensland was one of the objectors and welcomed the outcome.

"Thermal coal is being phased out so creating tonnes of greenhouse gas emissions is not in central Queensland's best interests," Dr Rowston said.

"Our environment and the communities that live here are far more important than one company creating a lot of profit.

"I think it's a very strong sign that proponents must take climate change seriously, because the court certainly does."