The Queensland Government has approved the $16.5bn Adani Carmichael coal mine project in the Galilee Basin in Australia.

The coal mine project could become the largest coal mine in Australia, and one of the largest in the world, claims the government.

A unit of Adani Group, Adani Mining, is proposing to develop the Carmichael coal mine as an open cut and underground mine, including six open cut pits and five underground mines, as well as a coal handling and processing plant.

The project also includes the construction of a 189km rail line north-west of Clermont, water supply infrastructure and off-site infrastructure, including a worker accommodation village and airport.

"Adani must meet 190 strict conditions during the construction and operational phases of the project."

Queensland State Development, Infrastructure and Planning deputy premier and minister Jeff Seeney said the Carmichael coal mine and rail project has the potential to create up to 2,500 construction and 3,900 operational jobs, providing a major boost to the local and state economy.

"It is expected to generate more than $500m annually in direct and indirect benefits to Queensland’s economy during construction and $3bn at full export capacity," Seeney said.

According to Queensland Coordinator-General’s report, Adani must meet 190 strict conditions during the construction and operational phases of the project.

Some of the conditions include protecting landholders, local flora, groundwater resources, surface water and air quality, and control of dust and noise.

Seeney said that, in relation to groundwater and water bores, Adani will be required to reach make-good agreements with all affected landholders, including the identification and provision of alternative water supplies.

"Adani will also be required to contribute water monitoring data and funding to a Galilee region water resource model," Seeney added.

The government has now sent the report to the Australian environment ministry to decide on issues related to the federal Environmental Protection and Biodiversity Conservation Act under the assessment bilateral agreement.