A Leigh Creek Aboriginal group is seeking a supreme court injunction to stop underground gas extraction at the old mine site.
The Adnyamathanha people are arguing that Mining Minister Dan van Holst Pellekaan should not have given final approval for the energy project.
It is alleged that Aboriginal Groups in the area were not consulted sufficiently and that Leigh Creek Energy’s environmental statement on the project was deficient.
They are hoping that the challenge will be taken before the Supreme Court.
The Government has already given approval for the controversial project with Leigh Creek Energy able to commence the three-month trial of underground coal gasification.