The court previously delivered a 3-2 split ruling in favour of community environmentalists who challenged an expansion at MACH Energy's Mount Pleasant coal mine in NSW's Hunter region.
It upheld a ruling from the state appeals court which found planning authorities must consider climate impacts of downstream emissions when reviewing projects.
But Premier Chris Minns announced plans for a "one-off intervention" on Monday.
He feared the ruling would have forced the scaling back of production at the major open-cut mine and put at least 400 jobs on the line.
Mr Minns said he "agonised" over the decision, which he said balanced the need to protect jobs as well as the environment.
"It's a difficult decision in the circumstances, but I'm convinced it's the right one, particularly if you consider most believe the high court's decision was a narrow, technical one," he said.
Mr Minns said the mine's planned operations until 2048 could be approved by lower courts in the coming months.
It was slammed by climate action group Lock the Gate, who labelled it "dangerous political interference".
"We understand the importance of a safety net for mining communities and back measures that back workers, but this is not about workers," spokesperson Georgina Woods said.
"This is about corporate interests trumping the public interest."
Greens MP Sue Higginson said the decision showed coal mining giants were writing the government's laws.
"And they are laws that will cause significant unassessed climate pollution and hurt communities," Ms Higginson said.
Legislation introduced in the next fortnight would force the company to guarantee it will keep its 826 permanent and contracted workers in their jobs.
It would also allow the company to continue with its planned expansion, increasing its annual production limit to 16.5 million tonnes until 2032 - four million tonnes more than its existing approval.
But the company would also be required to minimise its Scope 3 emissions - greenhouse gas emissions occurring indirectly through a company's value chain - at the mine, in line with requirements outlined by the Independent Planning Commission.
"That means that they will only be able to sell into economies that are party to the Paris Agreement on climate change," Mr Minns said.
The move was quickly welcomed by the NSW Minerals Council.
"The Mount Pleasant mine has endured four years of activist legal challenges, creating uncertainty for hundreds of mine workers, their families and local supplier businesses," chief executive Stephen Galilee said.
Muswellbrook landowner Wendy Wales led the case against the planned expansion of the Mount Pleasant mine.
The retired science teacher dubbed the high court decision, at the time, a win for Hunter communities.
"We have experienced the change from a country town with a mine over the hill, to a town that is now encircled by mines," she said.
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