Drilling at controversial mine cancelled

Drilling at a controversial northern NSW mine has been cancelled, with Metgasco seeking an urgent meeting with NSW Premier Mike Baird over their licence suspension.

In a letter to shareholders, Metgasco chairman Len Gill refuted NSW Resources Minister Anthony Roberts' claim the company hadn't undergone "genuine and effective consultation with the community" as required.

The failure to consult adequately led to last Thursday's suspension of the right to sink exploration wells at Bentley, near Lismore and Casino.

Mr Gill said the decision had damaged the company's reputation and cost about $3 million.

It's also cut about $18 million from the value of their shares, he said.

With the right to drill wells suspended and the withdrawal of police, who had been controlling hundreds of protesters camped outside the mine, Metgasco has "no option but to cancel drilling".

A day after receiving the suspension notice, the company wrote to the Office of Coal Seam Gas (OCSG) saying it had complied with all regulations.

Mr Gill slammed the decision as a "summary denial of natural justice".

The Metgasco board has written to Mr Baird "to express (their) strongest concern and to seek an immediate review of the decision to suspend our drilling".

On Tuesday, five days after the suspension was announced, blockade participants - some of whom have been in place since early this year - starting packing their bags.