A nickel and cobalt mine which was expected to bring 300 jobs to Young is looking doubtful.

The Mayor of Young, Stuart Freudenstein, says he has only read reports in the local paper, but he is concerned the mine may not go ahead.

"We're naturally disappointed, any possible employer like that starting up in a countrytown like ours has to be very much welcome," he said.

"The possibility it may not happen or may be delayed is certainly a worry."

The Melbourne-based company says the agreement fell through last Friday, but it is expected to begin renegotiating soon in a bid to come up with an acceptable agreement.