A simmering dispute between Isaac Regional Council and the proponents of Adani's Carmichael coal project has exploded with threats of legal action to ensure the company complies with its approvals and infrastructure access agreement.

But Adani's Bravus Mining and Resources says it will call on the State Government to safeguard thousands of jobs, if need be, and accuses the council of a "smear campaign".

The mine is being built in the Isaac shire about 160km northwest of Clermont.At its monthly meeting, the council unanimously endorsed a mayoral minute outlining its dissatisfaction with the company's behaviour.

"Frankly, Isaac Regional Council have lost patience with the behaviour of this company," Mayor Anne Baker said.

"We are disappointed with Adani's treatment of local landholders and their noncompliance with some of their obligations, and also disappointed by exclusive job advertising in and around Rockhampton and Townsville and not local communities like Clermont."

Isaac Regional Council Mayor Anne Baker.
Isaac Regional Council Mayor Anne Baker.

The council's CEO was authorised to take action including "advocacy, formal dispute and legal action where necessary".

The minute expresses the council's "strong dissatisfaction" with Adani's handling of a dispute with a nearby landowner as well as in an ongoing legal dispute with the council about the standards of road construction.

But a spokesman for Bravus said the claims were incorrect and the council had ignored formal dispute resolution processes and embarked on "what can only be described as a smear campaign".

"Our priority is to ensure the health and safety of our people and the community, while delivering safe and commercially competitive infrastructure," the spokesman said.

The spokesman said they were not arguing about having to pay for roadwork - expected to cost in excess of $100m over two years - but the level of flood immunity the council wanted.

"This request does not make technical or commercial sense" the spokesman said.

The spokesman said they wanted the council to consider alternatives.

Originally published as Adani and council stoush turns ugly