The Queensland Government in Australia has approved the construction of Adani Mining's $2.2bn North Galilee rail project to serve its $15bn Carmichael coal project.
The 300km rail line will connect the Carmichael coal mine west of Moranbah to the port of Abbot Point, and will create around 2,400 jobs.
Queensland Minister for State Development, Infrastructure and Planning and Deputy Premier Jeff Seeney said: "The multi-billion 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."
The standard gauge rail line will transport around 100 million tonnes of coal a year.
Queensland's independent coordinator general has asked the company to minimise the potential impacts of rail line construction and operation on landowners and the environment.
"Proponents Adani must also develop an agreement with each affected landholder that stipulates how access will be maintained to homesteads, stock feeding areas and water supply," Seeney added.
"The company must also submit final rail design and revised flood modelling to the coordinator general for approval before construction commences."
Construction works on the rail line would be completed in two years time, during which it is estimated to generate $790m for the Mackay region and more than $900m for the state economy.
The open cut and underground Carmichael mine is expected to produce 60 million tonnes of coal a year at full capacity.
The project now awaits approval from the federal government under the Environmental Protection and Biodiversity Conservation Act, which is expected by 30 September.