The Queensland government has declared Friday that the Wenlock River would be regarded as a 'wild river' and ordered the state's Natural Resources ministry to set up a 500 metre protection area around Coolibah Springs, with an extended one kilometre exclusion area surrounding the river realm.

The decision surprised the mining companies who were considering explorations projects in the area, with Cape Alumina planning to establish a bauxite mining facility near the river and Rio Tinto expressing interests to build up presence in the area.

Natural Resources Minister Stephen Robertson said that the area has been identified as a sensitive location that calls for protection as he stressed that the government ruling would "strike the right balance between environmental protection and sustainable development."

He gave assurance though that mining activity, grazing, tourism and other development projects would still be welcomed in areas "where they do not threaten the river."

However, Cape Alumina has expressed sadness that the state government seemingly took part in jeopardising about 1700 jobs through their decision, adding that the company is forced to re-evaluate its interest in the area and review their planned projects.

Company spokesman Dr Paul Messenger said that it is almost illogical "that a government as heavily indebted as Queensland would without justification write off $1.2 billion in GDP (gross domestic product)."

For her part, Terri Irwin, widow of famed 'Crocodile Hunter' Steve Irwin, countered that the government has made the right decision as she said that the exclusion zones should ensure that the river's significant natural values would be aptly protected.

Ms Irwin has been waging a vigorous campaign against an intended bauxite mine site near the river as the planned Steve Irwin Wildlife Reserve would be located in the area.