Mining company Metgasco will take the NSW government to court over its decision to suspend its controversial coal seam gas drilling licence.
Energy Minister Anthony Roberts suspended the licence in May after an audit found the company had failed to properly consult the community about its Bentley mine operations in the NSW Northern Rivers region.
Metgasco asked for the suspension to be reviewed but it was upheld last week.
The government's May decision to suspend the licence came just days before thousands of protesters were expected to form a blockade at the Bentley drill site and up to 800 police officers were detailed to monitor their activities.
Metgasco has filed for a judicial review in the Supreme Court, and plans to argue the minister's decision was unlawful because it wasn't authorised in legislation and denied the company procedural fairness.
It also disputes the government's claim it did not properly consult the local community.
The matter is due before court on Friday.
Metgasco chief Peter Henderson says the company has no other choice than to proceed with court action to protect its shareholders.
"The prime reasons for the suspension decision appear to have little to do with Metgasco's efforts to consult in good faith with the local community, but rather a concern about protests by activists who demonstrably have no interest in consultation," he said in a statement on Friday.
He said the government's decision to suspend the firm's drilling licence would send a "very negative message" to other companies wanting to invest in the state.
"Very few companies can now proceed with their business with the confidence that the rules will be upheld," he told AAP.
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