PERTH (miningweekly.com) – The Queensland state government on Thursday gave the nod to India’s Adani Mining to construct a 300-km rail line linking its proposed A$16.5-billion Carmichael coal mine to the Port of Abbot Point.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the approval of the North Galilee basin rail project was another key decision in unlocking the resource-rich Galilee basin for the benefit of all Queenslanders.

“The multibillion-dollar coal projects proposed for the Galilee basin have the potential to create the next wave of resource sector jobs in Queensland and dramatically boost our state’s coal exports,” Seeney said.

The rail line would take around two years to build, employ about 2 400 people and would pump up to A$790-million into the Mackay region and over A$900-million into the state economy during its construction phase.

The proposed standard gauge greenfield rail line will cost A$2.2-billion and be able to transport 100-million tonnes of coal a year.

The rail line would be linked to the Carmichael project, which is expected to produce about 60-million tonnes of thermal coal a year. The project will create up to 2 500 construction jobs and employ about 3 900 staff when operational.

Seeney said in approving the North Galilee basin rail project, the Coordinator General had imposed strict conditions on the construction and operation of the rail line to minimise potential impacts on land-holders and the environment.

“These rigorous conditions protect flora and fauna and address surface water, air quality and noise emissions. Proponents Adani must also develop an agreement with each affected land-holder that stipulates how access will be maintained to homesteads, stock feeding areas and water supply.”

Furthermore, the Indian firm also had to submit final rail design and revised flood modelling to the Coordinator-General for approval before construction started.

The Queensland Resources Council (QRC) has welcomed the state government’s decision to allow the rail development, saying the project would provide vital jobs and confirm the long-term contribution of the coal industry to the state and the nation.

“This is another important step in opening up one of the state’s great energy provinces, and for Adani, another milestone for its A$16.5-billion Carmichael mine, rail and port project,” said QRC CEO Michael Roche.

The rail project now requires the federal government to make an approval decision under the Environmental Protection and Biodiversity Conservation Act, which is expected by the end of September.