Natural Resources and Mines Minister Dr Anthony Lynham approved the grant of three 27-year leases over 30,000 ha for Stage 1 of Wandoan.

When operational, the mine could produce up to 22 million tonnes of high-quality thermal coal annually.

This would be the first major coal project of this scale in the Surat Basin.

It still requires a rail link to the Port of Gladstone for export.   

Glencore said it is taking a "responsible approach" and will only bring on new large scale production volumes if it is confident that market conditions support such a development.

"Adding significant new tonnes to the market at this time could adversely impact the profitability of existing thermal coal production, potentially putting jobs at risk as the market adjusts downwards as a result of oversupply," it said.

The Australian Conservation Foundation has expressed “significant alarm” at the approval.

“This announcement by Mines Minister Anthony Lynham is a shocker,” ACF Climate and Clean Energy Campaigner Jason Lyddieth said.

“There is absolutely no reason to allow a massive multinational coal company to dig another big dirty hole on some of Queensland's best farming land.”

Lyddieth said local farmers had been fighting the coal mine for several years.

“Earlier this year a massive solar project near Roma was approved with the overwhelming support of the community,” he said.

“That is the kind of decision the Queensland government needs to be making, not more dirty coal.”