In May, a federal appeals court upheld a ruling that blocked approval of the Rosemont copper mine in southern Arizona.
Toronto-based Hudbay Minerals will not appeal the decision.
The company planned to dig in the eastern Santa Rita Mountains, but a coalition of conservation groups and tribes filed suit to block the project.
They said the Forest Service never should have approved Hudbay’s proposal, because it would lead to environmental damage that would extend far beyond the actual mine.
A judge agreed. Roger Featherstone of the Arizona Mining Reform Coalition said the ruling was an important one.
“We’re pleased that it’s now legal precedent that courts have ruled in our favor and they can’t move ahead with their Rosemont proposal,” Featherstone said.
The company has shifted its attention to developing private land on the western slope of the mountain range, a project it is calling the Copper World Complex.