A TWEED anti-CSG campaigner has said a company's suspension of its North Coast operations was a warning of the community's resolve to stop the industry.

Lock The Gate Tweed's Michael McNamara said other companies looking to explore a coal seam gas industry on the North Coast should take note.

"That strong community support for the campaign has bought this about," Mr McNamara said.

"The community opposition to this industry in the Northern Rivers is entrenched.

"The fight is still going on."

Metgasco released a statement to the Australian Stock Exchange today on the suspension of operations because if uncertainty and lack of confidence in the NSW Government.

"Once CSG investment regulations are firmly established and it once again becomes prudent to invest shareholder capital exploring and developing CSG reserves in NSW, Metgasco will resume its operations," the statement said.

"In the meantime, Metgasco plans to use its capital to pursue opportunities outside the Clarence Moreton Basin to better broaden its spread of technical, operations and geographical risks."

Metgasco managing director Peter Henderson said the decision was disappointing but necessary.

"Only five months after introducing these new regulations and confirming the support of the industry, the NSW Government has yet again announced new regulations, this time without any consultation with the energy industry," Mr Henderson said.

"The company will rehabilitate most, if not all, wells and facilities located on its permits."

Richmond MP Justine Elliot said she welcomed the decision of the company.

"Whilst I welcome Metgasco's decision to temporarily suspend their activities, locals are telling me they won't stop until the NSW State Government declares the North Coast CSG-free," Mrs Elliot said.

"Now is the time for State National Party MPs like Geoff Provest to stop ignoring locals and come clean on their National Party's pro-CSG development agenda."

My Daily News is seeking comment from Mr Provest on the company's decision.