BHP Billiton's coal mining joint venture with Mitsubishi is investing $US204 million ($A271 million) to set up an overland conveyor system between two of its mines in Queenland's Bowen Basin.
The Caval Ridge Southern Circuit (CRSC) project will involve an 11-kilometre overland conveyor system to transport coal from the group's Peak Downs mine to its coal handling preparation plant at the nearby Caval Ridge mine.
It will also include an upgrade of the existing plant and stockyard as well as investment in new mining fleet such as excavators and trucks.
The project formed the missing link between the two mines, and will accelerate growth and productivity, BHP's head of Australian minerals Mike Henry said on Friday.
The BHP Billiton Mitsubishi Alliance (BMA) has long planned to boost potential capacity by installing the conveyer system at the Caval Ridge mine, which currently runs at 6 million tonnes a year.
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The CSRC project will increase the coal handling plant's throughput to 10 million tonne per year capacity, BHP said.
The project will create up to 400 new construction jobs in the region and also lock in 200 existing operational roles.
Construction at the project will start by mid-2017, with full production expected by 2019, Mr Henry said.
BMA is Australia's largest producer and supplier of seaborne metallurgical coal, owned 50:50 by BHP and Japan's Mitsubishi.
It operates seven mines in the Bowen Basin and owns and operates the Hay Point Coal Terminal near Mackay.
The investment approval comes at a time when coking coal prices have rebounded in recent months due to rising demand from China's steel mills.
Prices soared have also in recent weeks after tropical cyclone Debbie caused severe flooding and landslides in central Queensland, and forced the closure of many ports, railways and mines.
BHP Billiton was among the major suppliers in the region forced to declare 'force majeure' for all coal deliveries from its mines in the Bowen Basin because of the storm.
On Friday, BHP said all its mines were now up and running, and ready to transport supplies once the rail routes - run by Aurizon - open on April 26.
By 1355 AEST, BHP shares were up 1.6 per cent at $24.02, in a strong Australian market.
