MINING operators could be turned off Tasmania if legal challenges against proposed mines in the Tarkine continue, the Tasmanian Minerals Council has warned.
Council chief executive Terry Long said the injunction lodged by the Save the Tarkine Coalition against Shree Minerals' Nelson Bay mine was discouraging to investors and was an "abuse of the legal system".
"It demonstrates that even if you get your approvals through the legitimate regulatory processes, and through the approvals set by the Environmental Protection Authority, that doesn't mean you have got a project in Tasmania," Mr Long said.
The mine, south-west of Smithton, is expected to create 100 jobs.
A federal court judge upheld the injunction against the mining company yesterday, but brought forward a two-day hearing on the matter to July.
Save the Tarkine Coalition spokesman Scott Jordan said the injunction was filed to prevent Shree Minerals from starting work on the mine while its legal challenge against federal Environment Minister Tony Burke's approval of the mine continued.
The group alleges Mr Burke's approval is in violation of Environmental Protection Legislation, because of the impact on endangered species like the Tasmanian devil.
Shree Minerals challenged the injunction and was ordered to pay the action group's legal costs for yesterday's court appearance in Melbourne.
The injunction will hold until Justice Shane Marshall hands down a decision on the July hearing later this year.
A spokesman for Shree Minerals said the company would not comment on active court proceedings. Mr Burke's office also declined to comment.
Premier Lara Giddings said the injunction was a concern.
"We firmly believe that Shree Minerals should be able to pursue their project in an area where we're talking about only about 1 per cent of that region being open to mining," Ms Giddings said.
Opposition mining spokesman Adam Brooks said the same groups that opposed forestry had turned their attention to mining.
"You can never appease green groups," he said.