Ms Olofsson, represented by the Environmental Defenders Office, challenged the legitimacy of the minister’s removal of the common from the Camberwell Common Trust’s control in April last year.

The 90-hectare common, which had been controlled by a community trust since 1876, was resumed and its control given to Ashton Coal.

A related company, White Mining, lodged a mining lease application on the land in May last year.

The Environmental Defender’s Office initially launched the case on behalf of the Camberwell Common Trust in April.

The court ruled the trust could not be represented as the applicant, which resulted in Ms Olofsson becoming the applicant.

Ms Olofsson argued that the action did not comply with statutory provisions of the Commons Management Act, 1989, and the Crowns Land Act, 1989.

Land and Environment Court Chief Judge Brian Preston dismissed Ms Olofsson’s challenge last week.

‘‘I have concluded that none of the grounds of challenge to the reservation revocation and grant licence have been established and that the proceedings should be dismissed,’’ Justice Preston wrote.

An earlier maximum costs order meant meant that Ms Olofsson would be liable to pay a maximum of $10,000 if she lost the case.

Justice Preston ruled that Ms Olofsson pay $5000 costs to the Crown Solicitor’s Office and $5000 costs to White Mining and Ashton Coal.

Ms Olofsson said she was considering legal advice before deciding whether to appeal.