Australian Prime Minister Tony Abbott has backed Adani’s Carmichael mine proposal after the project approval was overturned by a federal court.

Abbott said that he is ‘frustrated with this outcome’ and said that projects like the Adani mine are too important to be hindered by red tape.

Adani had to halt the $16.5 bn coalmine project in central Queensland because it posed threat to two rare species found only in Queensland.

Abbott said: "Already the Adani group has invested about $3 billion in Australia in preparation for this further investment. This coal will power up the lives of 100 million people in India.

"So, this is a very important project, not just for Australia, but for the wider world and if we get to the stage where the rules are such that projects like this can be endlessly frustrated, that’s dangerous for our country and it’s tragic for the wider world.

"So, we’ve got to get these projects right; it’s absolutely vital that we get these projects right. But once they are fully complying with high environmental standards, let them go ahead. Let them go ahead for the workers of Australia and for the people of countries like India who right at the moment have no electricity."

According to Abbott, the new projects must be considered according to their merits and must not be held up by the campaigns launched by anti-mining protesters.

Mineral Council of Australia chief executive Brendan Pearson said: "The Prime Minister Tony Abbott has issued a compelling and timely warning about the risk posed to the Australian economy by a small, well-funded, ideologically motivated campaign to halt mining projects.

"New projects must be treated on their merits, not held up by vexatious and incessant legal appeals lodged by a small band of anti-mining protestors funded by overseas interests.

"Future investment in the sector will be at risk if projects continue to subject to interminable delays."