Allen Berry, a businessman who said his family had been in Jerrys Plains for seven generations, said the public had been "hoodwinked" over the Doyles Creek proposal.

In a resignation letter to consultative committee chairman Jock Laurie, a former NSW Farmers Federation president, Mr Berry said he was sick of the Doyles Creek consortium "making unbelievable promises and [being] unable to answer simple questions".

Doyles Creek was announced in 2007 as a training mine backed by a former national head of the Construction, Forestry, Mining and Energy Union, John Maitland.

Mr Berry said the consortium had been "softening up" the Jerrys Plains community, saying the mine would bring a doctor and a supermarket.

He said the company kept saying it had no definite plans and then suddenly the residents were confronted with maps that showed the mine going under half the town.

"This is all about greed driven by government," Mr Berry said. "There is no respect for the individuals. Our rights are not being taken into consideration.

"We are second class citizens."

NuCoal managing director Glen Lewis said it was unfortunate Mr Barry had resigned.

"While I respect his opinion, I do not believe it is shared by many other members of the consultative committee," Mr Lewis said.

Doyles Creek obtained its exploration licence over 27 square kilometres near Jerrys Plains in December 2008 for $1.2 million.

The State Government justified the price and lack of the usual tender because Doyles Creek was a training mine but the owners have listed the business on the Perth Stock Exchange, and the training aspect is now described as "an extension" of the main business, which will be underground coalmining for the export market.