The mega project located in Queensland's Galilee Basin, which would be the biggest in Australia, was challenged by Conservation group Coast and Country in Brisbane Land Court on the ground that the mine would affect groundwater, climate change and biodiversity, including black-throated finches, an endangered species.

Land Court president Carmel MacDonald recommended state Environment Minister Greg Hunt to grant mining leases to Adani group on certain conditions including measures to protect the endangered black-throated finch, the ABC news reported.

MacDonald also ordered that the Ten Mile Bore region be investigated to determine their importance in sustaining the black-throated finch population.

The Queensland Resources Council chief executive Michael Roche said the decision showed the environmentalist group's claims were unfounded.

The coal mine is facing another legal challenge in the Federal Court by the Australian Conservation Foundation.

Adani group says its project will deliver 10,000 direct and indirect jobs, and USD 22 billion in taxes and royalties to the state.

There was no immediate comments available from the mining group on Land Court's decision.

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