The details of the settlement over a more $300 million coal royalties dispute between mining giant BHP and the Queensland government will stay under wraps.

In a Supreme Court hearing that lasted just three minutes, barrister John Sheahan, for BHP, confirmed the matters had been resolved.

BHP and its coal partner, Mitsubishi, launched legal action to dispute a government demand for $329 million, in relation to a government reassessment of royalties relating to BHP's Singapore marketing office, going back to 2005.

On Monday, the court was told an "agreement in principle" was reached, and negotiations on the out-of-court settlement were expected to be finalised within the day.

A spokeswoman for Treasurer Jackie Trad said the matter was subject to the confidentiality provisions in the Mineral Resources Act.