Opposition Leader Bill Shorten has denied telling colleagues he wants to block the Adani mega-mine should Labor win government, instead insisting that blocking it would hurt foreign investment in Australia.

Mr Shorten declared the position on Friday amid internal wrangling over the divisive coal mine proposal, and concern from some quarters within the party that Labor is sacrificing its electoral chances in Queensland for city votes.

The Adani coal mine proposal has encountered strong public opposition. Credit:Justin McManus

A fortnight out from inner-Melbourne’s Batman byelection, where Adani’s Carmichael mine is a prominent issue, Mr Shorten said of the project “I don't like it very much” and predicted it would probably not proceed.

The project by the Indian mining giant would be Australia’s largest coal mine and open coal reserves in Queensland’s Galilee Basin to further development. But the proposal has met stiff public opposition and struggled to secure finance.