Australian cattle can thrive on land rehabilitated after mining, according to a study conducted by the New South Wales (NSW) state government.

Mining giant Rio Tinto has labelled the results of the ongoing study as "promising".

"The steers on the rehabilitated land are the stand-out performers despite starting on a level playing ground in terms of lineage and weight," Rio Tinto environment and community manager Andrew Speechly said in a statement on Friday.

"The benefit of this trial is that we are getting good quality data to confirm that rehabilitated mining land can support cattle grazing with the right approach in place.

"We've borrowed the best practice techniques from the agriculture sector as we work collectively with the community to change the way mines operate and minimize the impacts of mining."

The ongoing study investigates whether rehabilitated mine land can sustainably support productive and profitable grazing livestock.

The study which has taken place at the NSW Hunter Valley, north of Sydney, also monitors the health of the cattle during the trial through regular blood tests and monitors the quality of the pastures.