The company, whose Hume project in New South Wales is also the subject of resident opposition, has high hopes for the project which it believes could last for years and produce eight million tonnes of thermal coal annually.

It also lies in the fast growing Surat Basin and is in close proximity to Xstrata Coal’s giant Wandoan project, which drew protests from Greenpeace.

Cockatoo Coal proposes to establish the North Surat-Taroom coal project, south of Taroom township, in partnership with MCH Surat Basin Investment Pty Ltd, a subsidiary of Japan's Mitsui.

The project covers about 5800 hectares and in addition to mining infrastructure the company is seeking approval of a creek diversion, a rail spur to the proposed Surat Basin Railway and diversion of nine kilometres of the Leichhardt Highway.

Queensland Deputy Premier Jeff Seeney said 22 submissions had been received on the draft terms of reference for the environmental impact statement for the project.

"This project has the potential to create up to 1000 construction and 550 operation jobs, with further regional jobs from flow-on economic development," Seeney said.

"I welcome the Queensland Coordinator-General's approval of the final terms of reference for the EIS for the proposed coal project, which means we are one step closer to knowing if the project is fit to be approved."

Coordinator-General Barry Broe would assess the project through an EIS to be prepared in accordance with the bilateral agreement between the state and the Commonwealth.

Seeney said public consultation of the draft TOR raised a number of issues, which had been incorporated into the final TOR, including cumulative impacts in the Surat Basin and Fitzroy Basin regions; groundwater impacts and environmental consequences; water-related impacts on listed threatened species and communities and migratory species; and impacts of pre-construction workforce on community and housing availability.

Seeney said when the EIS was ultimately released in 2013-14 the community would again be able to have its say and provide submissions to the coordinator-general.