Planned to be located 12km south-west of Alpha and about 180km west of Emerald in Central Queensland, the open-cut and underground mine is expected to produce around 17 million tons of coal each year.
It will support the region with up to 1,600 jobs and about 1,300 on commencing operations, and is estimated to have operational life of 33 years.
The project will be delivered in three stages – the open-cut Epsilon stage during which coal will be transported on the Central Western Railway for export through the Port of Gladstone.
During the second and third stages, the coal will be transported on a common user railway to the Port of Abbot Point.
Queensland deputy premier and minister for state development, infrastructure and planning Jeff Seeney said: "This is another step forward for the Galilee Basin and follows Alpha Coal, Kevin’s Corner, Galilee Coal Project and Carmichael Coal Mine and Rail Project receiving both State and Federal Government approvals.
"The Newman LNP Government has been working hard to facilitate the investment required to open up the Galilee Basin.
"With this decision, the Coordinator-General has approved 16 major projects to proceed in our State, worth more than $67 billion and able to create about 44,000 jobs for Queenslanders."