Local landholders and environmentalists say they are relieved after a Canadian-owned mineral explorer withdrew applications to drill for minerals in the Macquarie Marshes.

The Western Plains App confirmed last week that Australian Consolidated Gold Holdings (ACGH) had applied for a variation to its applications after it discontinued a court case against regulator NSW Resources on 25 February.

However, NSW Resources confirmed on Thursday 24 April that the company has since withdrawn the applications.

"It's a significant reprieve for the Marshes and all of us who care about the marshes' future," National Conservation Council Water Campaigner Mel Grey said.

"The iconic wetland is too valuable to be put at risk by invasive prospecting activities that threaten its delicate ecological balance."

A NSW Resources spokesperson could not confirm the date of the withdrawal.

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The Marshes are internationally recognised as an important wetland under the Ramsar Convention. IMAGE: River McCrossen

The App has approached the ACGH via a lawyer to ask whether they intend to reapply.

The regulator had approved exploratory drilling at two locations in April 2024.

It then overturned the approvals on 25 July that year, claiming the company had not provided all relevant and accurate information.

Later that year, the mineral explorer went to NSW Land and Environment Court to argue that the Minister for Natural Resources did not follow process under the Mines Act when the approval was revoked.

The application under contest was for two drilling sites on 'The Mole', on the edge of the Macquarie Marshes.

Landowner Garry Hall also welcomed the withdrawal, although he said there should be greater environmental protections for agricultural land.

"I think there's big understanding within the wider community that there's areas that are managed for agriculture which have equal to or greater environmental values than the nature reserves," he said.

The Marshes contain areas protected as nature reserves, although the locations for both drilling sites lay outside the zones and are used for grazing.

Mapping of protected reserves within the Macquarie Marshes found on the Ramsar Sites Information Service.