New dredging deal for Qld coal port

Queensland's largest coal mine is a step closer to reality after a new port dredging deal was struck.

There's been years of uncertainty about Indian miner Adani's Carmichael coal mine project amid debate about the expansion of the mine's planned export terminal at Abbot Point.

Federal approval to dump dredging material from the port expansion in the Great Barrier Reef Marine Park was opposed by both sides of politics during the January state election.

But Premier Annastacia Palaszczuk announced on Wednesday she had struck a deal to the dump dredged material on land instead.

"I support the responsible and sustainable development of the Galilee Basin and Abbot Point, and the agreement we've reached demonstrates that," Ms Palaszczuk said.

"Today my government sends a clear message: we can protect the Great Barrier Reef, and we can foster economic development and create jobs."

Adani, another Indian conglomerate GVK and the Queensland Resources Council applauded the government on the deal and said it showed the industry was committed to best practice.

"This port is vital to the future of opening up the Galilee Basin and the tens of thousands of jobs that will result," QRC chief executive Michael Roche said.

The new deal protects the internationally-significant Caley Valley Wetlands, where a small portion of the dredged material would have been dumped under the previous Liberal National Party (LNP) government's plan.

Green groups welcomed the protection the wetlands, but questioned the need to expand the port at all.

WWF Australia said Abbot Point was operating under capacity and existing ports could be used more.

Greenpeace and the Australian Marine Conservation Society said dredging would never be acceptable.

The massive Carmichael mine now depends on Adani's ability to fund the project.

If it goes ahead the mine will be Queensland's largest and it's expected to create 10,000 jobs and bring in $22 billion in taxes and royalties for the state government.

Queensland produced more coal than other any Australia state, exporting almost half the country's total in 2013.