The Auditor-General has decided against investigating the management, governance, and oversight of the debt-ridden state-owned enterprise Solid Energy.
The coal miner owes $390 million and earlier in May announced it would be cutting another 105 jobs as it tries to make ends meet.
Auditor-General Lyn Provost said on Friday that her staff have visited the Treasury and Solid Energy and she has given considerable thought to holding an inquiry.
However she has decided against investigating further, because she says the company is already subject to a significant amount of review, scrutiny and change.
Ms Provost says another inquiry wouldn't add enough value to justify the burden on the company and the taxpayer.
She says she will reconsider her decision, should circumstances change and proper public accountability is undermined.