Conservationists are celebrating after the Federal Court set aside the approval of the Carmichael coal mine after a legal loophole in Environment Minister Greg Hunt's decision was discovered.
Justice Anna Katzmann did not publish reasons for her decision, but challenging party the Mackay Conservation Group says Mr Hunt failed to take into account conservation advice on two threatened species - the yakka skink, described by the federal environment department as "an extremely secretive species", and the ornamental snake.
"This Federal Court decision to throw out Minister Hunt's approval is a victory for land and water, biodiversity, the global climate and also for common sense," the group's co-ordinator Ellen Roberts said.
The environment department acknowledged in a statement that "a technical administrative matter" had arisen. Indian mining giant Adani called the mistake a "technical legal error" from Mr Hunt's office.
The department said it was not necessary to revisit the entire approval process.
"Without pre-empting a final decision about the project, the department expects that it will take six to eight weeks to prepare its advice ... and for the minister to reconsider his final decision," its statement said.
The $16.5 billion coal mine and rail project slated for Queensland's Galilee Basin will be the biggest in Australian history if it goes ahead.
While Mr Hunt is unlikely to change his approval, there are fears the legal setback will scare investors off.
Queensland Resources Council chief executive Michael Roche said the red carpet that had been rolled out for the Indian prime minister at the G20 had been replaced with red tape.
"When it comes to India, they are watching what's going on here in Australia, in Queensland, and they don't like what they're seeing," he said.
But that's precisely the outcome hoped for by green groups, who believe the Carmichael mine is a disaster for the state's iconic Great Barrier Reef.
"This is a real chance for us to be free of this awful project once and for all," Greens deputy leader Larissa Waters said.
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