In a statement on Thursday Mr Stokes said there had been “no change in government policy and any suggestions to the contrary are incorrect”.

The NSW Government had not made any decisions on Drayton South because the proposed mine was still the subject of a NSW Planning Assessment Commission process and a final decision was not expected until the first quarter of 2017, Mr Stokes said.

It is the fourth Planning Assessment Commission assessment since 2013, with three previous PACs rejecting the mine after finding a coal mine was incompatible with thoroughbred racing studs. Two of the country’s largest studs, Coolmore and Darley, are only 900 metres from the proposed mine boundary.

“The government has not made any decisions in response to a determination as no determination has been made,” Mr Stokes said.

“Any government intervention in an independent assessment could improperly affect that assessment. It is inappropriate to comment further before the Commission makes a determination.”

News Limited publications, including Sydney’s Daily Telegraph, reported the NSW Government planned to change the law to cancel Anglo American’s Drayton South licence or put a significant buffer zone around the prestige studs that would directly impact the Drayton South proposal.

Anglo proposes to extract more than 70 million tonnes of coal over the 15-year life of the mine.

Lock the Gate Alliance has slammed the NSW Government for “damaging, ham-fisted flip-flopping” on Hunter coal mining, saying it should act decisively to protect all productive farmland from coal mining, including the region’s equine and wine industries.

Lock the Gate campaigner Georgina Woods said it was “unforgiveable” for the NSW Government to have put Hunter communities through “five long years of hell” over Drayton South.

“Five years ago the Government promised that important farmland and drinking water catchments would be off limits to mining, but in the years since they have left rural communities to suffer,” Ms Woods said.

“They’ve been left to fight for their livelihoods and industries against multi-national mining companies, with no support from the government.

“If the NSW Government is serious about resolving mining conflict, then it needs to put in place upfront protections for priority areas instead of forcing communities to fight in protracted conflicts, mine by mine.

“The government very nearly lost the seat of Upper Hunter in the last state election, and its failure to deliver on long-standing promises to protect farmland, villages and water resources from coal mining is going to be one of the biggest issues next time around,” she said.