The project would produce 30 million tonnes per annum of thermal coal for its expected life of 30 years, with sufficient resources to potentially extend the project life beyond 30 years.

It is the first of three projects being proposed in the Galilee Basin by the partnership between Hancock and Indian giant GVK.

With a total strike length of 24km in a north-south direction, the open cut mines would account for $3.4 billion of the capital cost, while $3 billion would be needed for the rail component.

Subject to relevant approvals being granted, the GVK-Hancock joint venture (GVK 79%, Hancock 21%) anticipates the construction period to occur between 2013 and 2016.

The project is anticipated to create up to 3600 direct jobs during the construction period (1500 mine, 2100 rail) and up to 990 direct jobs during operation (800 mine, 190 rail).

GVK vice-chairman G V Sanjay Reddy is spearheading the project and said the milestone was a major achievement for the Alpha project, which was now the only Galilee Basin proponent with an approved environmental impact statement.

“GVK’s vision is to be the premier, most reliable coal supplier to the world enabling better lives,” he said.

“The EIS is yet another milestone towards this goal and the October 2010 declaration of the rail corridor and signing the port framework agreement for T3 at Abbot Point all adds to the advanced nature of the project.

“GVK believes it can provide the best quality coal to supply power to developing countries and that power generation is a great enabler to economic growth and a better standard of living which we are all entitled to.”

GVK, which purchased a controlling share of Hancock Prospecting’s Galilee Basin coal mines last year and 100% of the rail and port assets, advertised publicly for expressions of interest for additional users on the railway.

It said it received a high level of interest in what would be “the most efficient bulk haulage rail service to operate in Queensland”

Clive Palmer’s Waratah Coal indicated it would prefer to develop its own corridor from its proposed Galilee Basin China First project to Abbot Point, despite the Queensland government requesting producers in the region cooperate and develop one corridor to the port.

Listed rail infrastructure group QR National is another contender for the rail corridor.

GVK has approvals and a terminal and two berths at Abbot Point catering for at least 60Mtpa of thermal coal destined for Asian markets.

In 2011, the GVK-Hancock JV delivered the first and only Galilee Basin bulk samples from its Alpha site to power stations in South Korea and China.

GVK said the results of the trial burns, totalling 100,000 tonnes, were better than anticipated and confirmed the high quality, excellent utilisation characteristics and low environmental impacts (such as low impurities and carbon dioxide) of the Galilee coal product.

Queensland Deputy Premier Jeff Seeney said the project would produce significant economic benefits for the state and nation.

"There'll be an estimated $11 billion boost to the economy during the mine's three-year construction phase," Seeney said.

“Eighty per cent of that will be retained in Queensland.

"Once operational, Queensland's economy should see an economic boost of $1 billion per year from this mine alone.

"Australia can expect an $80 billion dollar rise in exports over the life of the mine."

Despite the coordinator-general completing Queensland's assessment, the federal environment minister is yet to complete his assessment under Commonwealth environmental legislation.

"The coordinator-general has thoroughly assessed Hancock Coal's environmental impact statement and associated materials, including 60 public submissions and its supplementary environmental impact statement," Seeney said.

Coordinator-General Barry Broe said his 393-page report contained 128 conditions.

"Conditions and recommendations in my report will ensure that impacts are well mitigated and managed through environmental management plans, environmental licences, development permits and a social impact management plan," Broe said.