The Tarkine National Coalition yesterday lost a Federal Court battle to stop  Venture Minerals mining iron ore at Riley Creek on the West Coast.

It is understood that the mining company is set to come out of a trading halt today, eager to get the mine, which  is only at the exploration stage, back on track.

The Tarkine group appealed against a decision made in August last year by then federal environment minister Mark Butler to approve the mine.

Justice Richard Tracey said the group ``failed to make good'' any of the grounds of appeal.

Save the Tarkine campaign co-ordinator  Scott Jordan said he was disappointed with the decision.

``If there are grounds to appeal, we'll pursue them,'' Mr Jordan said.

``We don't believe this battle is lost.''

The grounds of appeal included a failure to consider the ``cumulative impact'' of other industry in the area  and the impact on threatened species including the Tasmanian devil, wedge-tailed eagle and spotted-tailed quoll.

Mr Jordan did not rule out   large-scale protest action.

``We're not going away and our supporters aren't going away,'' he said.

Opposition Leader Bryan Green said the decision was a ``win for jobs and commonsense''.

``The Riley Mine is an important project that will create much-needed jobs on the West-Coast,'' Mr Green said.

A spokesman for Venture Minerals said the company welcomed the decision.

``The company will make further statements through the ASX in due course,'' the spokesman said.