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imageSYDNEY: Australia has approved a massive coal mine that could ultimately provide electricity for up to 100 million Indians, angering environmentalists who warned Monday it may threaten the Great Barrier Reef.

Environment Minister Greg Hunt said approval for Indian firm Adani's Aus$16.5 billion (US$15.5 billion) Carmichael coal mine and rail project in Queensland state was subject to 36 conditions.

"The absolute strictest of conditions have been imposed to ensure the protection of the environment, with a specific focus on the protection of groundwater," he said in a statement.

The development proposes open-cut and underground coal mining some 160 kilometres (100 miles) northwest of Clermont in central Queensland, as well as a 189-kilometre rail link.

It is forecast to produce 60 million tonnes of thermal coal a year for export.

State officials say the project, which could potentially be the largest coal mine in Australia and one of the largest in the world, will play a major role in opening up Queensland's resource-rich Galilee Basin.

It is also expected to contribute Aus$2.97 billion to the Queensland economy each year and generate thousands of jobs.

"It is estimated the project will provide electricity for up to 100 million people in India," Hunt said.

Australia's exports are heavily dependent on mining, and Trade Minister Andrew Robb said the project demonstrated the potential for the resources sector to drive economic growth.

"It will help support the opening of Australia's first new mineral province in 40 years," Robb said, adding that the commitment from major global company Adani was a welcome foreign investment.

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