A native vegetation ruling has grounded a South Australian rocket launch despite having state and federal government planning approval.
The Native Vegetation Council denied variations to the heritage agreement at Whalers Way, where Southern Launch hopes to build a space facility.
The state government did not clarify whether the minister will challenge the decision.
The future of a rocket launch facility is in doubt after its proposal, which would entail the clearing of vegetation, was rejected.
The proposed Whalers Way Orbital Launch Complex is located 30 kilometres from Port Lincoln on land it leases privately.
Southern Launch had sought to have the heritage agreement officially amended so it could build a complex that would offer space mission services.
However, because the proposed site is a recognised conservation area for native vegetation and fauna, the Native Vegetation Council rejected the motion.
Rebecca Boulton from Birdlife Australia welcomed the upholding of the heritage agreement in place at the site since 1987, a habitat she said was home to two endangered bird species.
"A couple of species down there at Whalers Way are part of our recovery team, so the mallee whipbird is one of the species that we work with, and the Eyre Peninsula is the stronghold for that species," she said.
"We also work on another emu wren species, not your Eyre Peninsula species, but it's also a very important site for those two species."
Southern Launch's bid to create the Whalers Way Orbital Launch Complex has been met with ongoing opposition from conservation groups, including the local Eyre Peninsula Environmental Protection Alliance.
The company began rocket test launching at Whalers Way in 2021, which saw one of these attempts fail after the rocket caught fire.
Since then, Southern Launch has continued operations at its other facility at Koonibba Test Centre, further up the west coast of Eyre Peninsula.
The most recent successful rocket launch occurred at Koonibba in August this year, in partnership with the Koonibba Community Aboriginal Corporation.
Regional Development Australia Eyre Peninsula (RDAEP) CEO Ryan Viney said the RDA board had been supportive of the development of the space industry across Eyre Peninsula.
He added that it was important to listen to "the needs and aspirations of the community" when taking a "balanced approach to whether the development progresses or not".
"We've seen facilities developed in Koonibba, and we've seen some really positive outcomes for the community at Koonibba and we'd like to see that continue and develop across the [across the] whole Eyre Peninsula," he said.
"We think that it's an opportunity for Australia to develop some sovereign capabilities in this space, which is particularly important in terms of telecommunications and AI as they develop, so we think it's a really complementary industry that can diversify our economic base."
Ms Boulton said Birdlife Australia understood the heritage agreement decision could be overturned by the state government, but hoped the minister would listen to the Native Vegetation Council (NVC).
"There's been a lot of attention to this rocket launching facility, mostly because of where they've decided to do it, in a heritage agreement area, when there's a lot of Eyre Peninsula coastline that is already cleared," she said.
Prior to the NVC decision, Environment Minister Emily Bourke did not clarify to the Legislative Council earlier this month whether the government intended to take the advice of the NVC, adding it was an independent body.
A state government spokesperson also did not clarify if the minister would challenge the decision.
"The NVC has advised Southern Launch that its application has not been approved," the spokesperson said in a statement.
"Should Southern Launch seek to change its application, the matter could go back to the NVC for reconsideration."
Southern Launch and the Native Vegetation Council were also approached for comment.