An impact study into the effects an opencast mine would have on land near the Wrekin in Shropshire will be carried out, a council said.
Residents living near the proposed site had raised concerns that UK Coal would not pay for the study.
But a spokesman for Telford and the Wrekin Council said a study would be carried out and UK Coal had said it would co-operate with it.
UK Coal wants to extract 900,000 tonnes of coal from land near Huntington Lane.
Telford and Wrekin Council Leader, Andrew Eade, said: "UK Coal has declined to pay for a health impact assessment but says it will fully co-operate with the council should it decide to carry one out.
"The council has yet to make a decision on how to proceed."