On Monday the licence will expire, but that doesn’t mean Shenhua’s project is dead.

Shenhua submitted an application to renew their licence earlier this month.

The application is being reviewed by the NSW Division of Resources and Energy, which will then provide advice to Resource Minister Anthony Roberts.

An exploration licence gives the  holder exclusive rights to explore for petroleum or specific minerals within a designated area, but it does not permit mining, nor does it guarantee a mining or production lease will be granted.

Media outlets have reported federal government sources say the mine is “unlikely” to go ahead.

Greens mining spokesman Jeremy Buckingham today said the NSW government should provide farmers on the Liverpool Plains with certainty by giving the Chinese mining company its money back and cancelling the licence forever.

“The admission that the Shenhua Watermark coal mine is ‘unlikely’ to go ahead highlights the need for Premier Mike Baird to act to end the shambles and provide certainty to farmers,” Mr Buckingham.

“The Shenhua Watermark coal mine makes no sense in the current commodities market and has virtually no support to go ahead.

“Premier Mike Baird should end the uncertainty, can the mine and negotiate the return of the $300 million the company paid the NSW government for the exploration licence.”

If Shenhua successfully obtained a renewed exploration license, it would still need to apply for a mining lease before it could commence operations.