New South Wales Premier Barry O'Farrell has moved to void exploration licences for three mines at the centre of corruption inquiries.

The premier says he wants to excise the corruption clinging to exploration licences for Doyles Creek, Mount Penny and Glendon Brook in the Hunter Valley.

The cancellation is based on the recommendations of two Independent Commission Against Corruption (ICAC) inquiries into the actions of former NSW Labor minister Eddie Obeid.

The ICAC said the permits should be torn up and any pending applications regarding them be refused to try to clear the sites from the dank air of dodgy business.

Reports say there will be no compensation for the cancellation of the licences, but will require the licence holders to do any rehabilitation work the sites need.

NuCoal, holder of the Doyle's Creek exploration licence, said in a statement to the Australian Stock Exchange; “NuCoal is shocked and extremely disappointed by this decision.”

“There has been no consultation at all in regard to this matter,” NuCoal chairman Gordon Galt said.

“Given that only three working days have elapsed since our submission was lodged, it is difficult to believe that the decision to pursue the course announced by the government was made with a mind open to persuasion and not pre-set.”

Cascade Coal, which has exploration rights to Mount Penny and Glendon Brook sites, said in a statement earlier this week that it will take “all steps available” to protect itself against the “grossly unjust” decision.

“This latest announcement is a further example of the lack of procedural fairness and the denial of legal rights that has characterised the whole ICAC process,” the statement said.

“This politically expedient decision further underlines the difficulties of doing business in NSW.”

The legislation Premier O’Farrell hopes to introduce to end the licenses may include compensation packages for innocent victims of the revoke. The measure has been taken to avoid a future legal furore.