The Mackay-based centre will provide a training hub for the mining industry and is a joint initiative between the Government, the university and the Mining Industry Skills Centre.
CQU and the MISC have each pledged $2 million in funding for the project.
Deputy Prime Minister Mark Vaile said the new centre would put Mackay on the map as a leader in mining skills development and training internationally.
CQU pro vice-chancellor of research and innovation Professor Jennelle Kyd added the centre would strengthen the relationship between the contributing organisations and support future research programs.
"In addition to the simulation training, this partnership provides a major opportunity for the university to work with the industry sector in the development of new simulation products and the university will be engaging with the Mining Industry Skills Centre in a range of research programs," Kyd said.
"Effective training is an important part of all industry sectors and with the significant growth in the region associated with the mining and resource sector, this is a very important development for the Central Queensland region and we very much appreciate the Government's support of this initiative for our region."
The initial funding has been dedicated to building the 1250 square metre centre and a fit-out of the building to appropriate standards, including a simulator/IT research fit-out and teaching areas.
A $10 million Stage 2 expansion of the facility is planned within the next five years.