An application for an exploratory permit for a coking coal mine in one of Queensland's largest food bowls looks likely to be rejected for a second time.

Minister for State Development and Infrastructure Grace Grace said the government's preliminary view was the application was not in the public interest.

The mineral development licence application (MDL 3040) was first proposed in October 2019 and stretches more than 7,800 hectares of residential and agricultural land north of Bundaberg.

The area is 80 kilometres south-west of the Great Barrier Reef Marine Park, and if it eventuates would be the most coastal coal mine in Queensland.

'Food ahead of mining'

Bundaberg farmer Judy Plath welcomed the preliminary view.

"I view this decision as the state government wishing to reassure the Bundaberg community that that that coal mine is not going ahead," she said.

"[It's] great news for Queensland agriculture to learn that the Queensland government is putting food ahead of mining.

"There's absolutely no way a coal mine can coexist with high value agriculture."

But Ms Plath said the community would remain in limbo until a formal decision was made.

"There is still a level of uncertainty for local farmers as to whether the state government is going to properly reject the coal mine," she said.

Penny Taylor's property is within the MDL application area and she said it's time for "no".

"The mental health of a lot of people is at stake," she said.

"There's too much of this see-sawing with governments, they won't make a decision, they keep us dangling."

Cristel Simmonds from the Coal Free Bundaberg Action Group said there were many emotions within the group.

"It feels like deja vu, this is what happened in 2019, so we've heard this before," Ms Simmonds said.

"As a community, we desire a definitive answer, and for that answer to be no."

Fox Resources said it would review the announcement.

In a statement, Fox Resources' Executive Director Bruce Garlick said under the application, the company was seeking to drill five bore holes for exploration purposes, together with conducting some technical studies.

"These activities have minimal impact and will be conducted in accordance with the highest environmental and regulatory standards," Mr Garlick said.

"The company recognises the importance of protecting the region’s key agricultural and other industries, with no impact on the aquifer used for local water consumption and agricultural use."

Mine rejected once before

Resources Minister Scott Stewart rejected the application in 2022, saying it was not in the public's interest.

That decision was overturned by the Queensland Supreme Court in September last year.

After correspondence from Fox Resources alleged Mr Stewart could not be impartial in his decision, Ms Grace assumed responsibility for giving a preliminary view.

Ms Grace assumed responsibility for the assessment to address a potential conflict of interest of Mr Stewart.

Since the appeal, the Bundaberg community has been vocal about their opposition to the application, with bipartisan support from local state members Tom Smith and Stephen Bennett.

Macadamia farmer Mark Mason told the ABC in May, a potential coal mine would be a disaster to the environment and agriculture industry.

"We produce a large part of Australia's food, and they want to put a mine here directly under an area that's worth over $2 billion to our local regional economy," Mr Mason said.

Fox Resources has been invited to provide further submissions in response by November 15.