Court rejects Adani mine challenge

Indian mining giant Adani has cleared another hurdle in its bid to build Australia's biggest coal mine.

Queensland's Land Court rejected a legal challenge brought by environmental campaign group Coast and Country, who oppose the $16.5 billion Carmichael mine in the Galilee Basin on environmental, ecological and economic grounds.

However, on Tuesday in Brisbane the court found mining leases should be granted with tightened environmental conditions relating to the endangered black-throated finch.

Treasurer Curtis Pitt said it was a "significant milestone" for the project.

In the next step authorities will consider the Land Court's recommendations and decide on the mining leases.

Coast and Country spokesman Derec Davies said the decision would "pave the way" for the destruction of some of Queensland's most beautiful ecosystems.