The company behind a $6.7 billion Queensland mega-mine is under pressure to prove it can meet it social and environmental obligations to operate.
MacMines Austasia's proposed China Stone coal mine in the Galilee Basin in central Queensland is another step closer after being backed by the state's coordinator-general.
Final approval and financing are required before construction.
The 20,000 hectare mine will sit approximately 30 kilometres from the Carmichael mine and rival in size the early stages of Adani's controversial project.
The mine set to generate 3900 construction jobs and 3400 operational positions, with expectations it will export 38 million tons of coal to Asia annually for 50 years to generate billions of dollars for the state economy.
As with Adani's mine which has raised concerns about the impact on the Great Barrier Reef, groundwater and greenhouse gas emissions, the MacMines is set for environmental opposition.
The Australian Conservation Foundation has labelled the project "reckless" and called instead for more investment in jobs in renewable energy.
Isaac Regional Council mayor Anne Baker, who lives some 190 km away in the mining town of Moranbah, called on MacMines to listen to how to operate responsibly.
"The definition of that is local job and business opportunities. Provided it's delivered in a responsible manner, it's positive for everyone," Cr Baker told AAP.
In his report, coordinator-general Barry Broe found the mine would have significant economic benefits and "environmental impacts can be acceptably managed, minimised or offset".
The Queensland Resources Council said it would add to the $4 billion in royalties the mining industry contributes to the state each year.
