The company, which recently said it would be diversifying and finding ways to offset its carbon emissions, said the project would produce about 2.5 million tonnes of coal a year for 10 years.

“This approval supports the continuation of operations at the Isaac Plains complex by providing a new source of run-of-mine coal to fee the Isaac Plains coal handling and preparation plant and therefore ensuring the ongoing employment opportunities for the Moranbah area as well as enhancing the economic development of the region,” the company said.

Chairman Dwi Suseno said the approval was a major milestone for the company.

The company will spend $47 million for essential infrastructure that would allow dragline operations to start early next year and total capital costs were expected to be about $82 million. About $15 million has already been spent.

The project would generate about $200 million in royalties for the State Government.