An Australian court has reversed the government's approval for Adani's Carmichael coal mine in Queensland.

The Federal Court of Australia ruled that the environment minister Greg Hunt overlooked the threat the mining project would pose to vulnerable animal species in the region.

The decision was made after Mackay Conservation Group represented by Environmental legal centre EDO NSW challenged Hunt’s approval of the $16.5bn mine, which would have been one of the world’s biggest coal mines.

EDO NSW principal solicitor Sue Higginson said: "The decision of the Court to set aside the Carmichael mine’s federal approval was based on a failure by the Minister to have regard to conservation advices for two Federally-listed vulnerable species, the Yakka Skink and Ornamental Snake.

"The conservation advices were approved by the Minister in April last year, and describe the threats to the survival of these threatened species, which are found only in Queensland."

Not only did the Indian coal mining company had to struggle to get financing for the project it also got approval for the construction of coal port in Queensland coast to help the company export coal from the mine.

The open cut underground mine would have produced 60 million tonnes of coal a year, of which a majority would have been shipped to India.

The company said in a statement: "Adani is confident the conditions imposed on the existing approval are robust and appropriate once the technicality is addressed."