Anglo American has received final approval from the provincial government of Queensland to build its $1.7bn Grosvenor mine project in Australia.

The project is planned for Moranbah in Queensland’s Bowen Basin and is expected to triple the company’s metallurgical coal production by 2020.

Queensland Natural Resources and Mines Minister Andrew Cripps said in a statement, "The Grosvenor mine will create up to 1,000 new jobs for Queenslanders and represents a significant expansion of Anglo American’s Queensland operations."

The mine will comprise a single new underground long wall mine targeting the same well as Anglo American’s Moranbah North mine.

Anglo American said site construction work will now commence on bulk earthworks, access roads and the cut and cover tunnels for the two drifts from the surface.

First coal production is planned in 2013 while long wall mining will begin in 2016.

The state requires Anglo American to build homes for workers to help bolster the community as a condition of the mining licence, with the company saying it will build more than 50 new houses and townhouses in the Moranbah area, reports Reuters.