However the decision by the Queensland government has created confusion about the state's energy future.
The Liberal National government on Tuesday knocked back the Fox Resources steel making coal mine in southern Queensland, saying it was "not in the public interest".
Fox Resources wanted to explore almost 8000 hectares near Bundaberg which hosts a $4 billion agriculture industry, with the potential for a full scale mining operation.
Environmentalists had concerns about the potential impact on the major food growing region since the application was first proposed in 2019.
Locals feared the region's water resources, environmental values, liveability and tourism would also be affected by the mine.
Activist groups hailed the LNP government's call as the "sensible choice", saying they hoped the same decision would be made for coal mine expansion proposals in central Queensland's Baralaba and Emerald.
Lock the Gate's Maggie Mckeown said the proposed Bundaberg project would have dug underneath farmland and impacted precious water resources, putting "coal ahead of a food bowl".
"We think that the same kind of sensible decision-making should be applied to all coal mine proposals on farming land," she told AAP.
However environmentalists said the LNP government's Bundaberg mine rejection indicated "some policy confusion".
"Are we going to embrace the future, which is clean energy, critical mineral exports and green iron, or are we going to be stuck linked to fossil fuels?" Queensland Conservation Council director Dave Copeman told AAP.
He said the LNP had sent "mixed signals" on renewable energy projects, leaving the industry confused about investment opportunities.
It came after an industry survey revealed Queensland was no longer the most attractive state for clean energy investment, with NSW taking the top gong.
Recent budget papers cemented the LNP's pre-election promise to scrap targets set by the former Labor government to reach 50 per cent renewable energy in the power grid by 2030, 70 per cent by 2032 and 80 per cent by 2035.
The state will no longer track how much renewable energy is contributing to the grid, calling it a "discontinued measure".
The LNP government also passed a bill that requires renewable energy developers to undertake community consultation prior to project approvals.
Mr Copeman said it was time Premier David Crisafulli took charge of the state's energy plan.
"Creating clarity about what the plan is for Queensland's energy future is the most important job he has."
Meanwhile, a "disappointed" Fox Resources said it would review the LNP government's decision.
"We have actively engaged with the Bundaberg and Wide Bay community ... and provided evidence there will be no impacts on local agriculture or water users from our activities," Fox Resources Executive Chairman Bruce Garlick said in a statement.
He said the Bundaberg project had the potential to create about 200 jobs and inject up to $45 million a year into the local economy.
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