Clive Palmer's Waratah Coal has been given environmental approval by the Federal Government for a major thermal coal mine in Queensland's central-west.

Waratah Coal plans to develop the $6 billion China First mine project near Alpha in the Galilee Basin.

The plans include the construction of a 500-kilometre rail line to the Abbot Point coal terminal in Bowen in north Queensland.

Last week, Environment Minister Greg Hunt gave the go-ahead for the Abbot Point terminal expansion, which will involve dredging 3 million cubic metres and disposing of the contents within the Great Barrier Reef Marine Park area.

The expansion of the port is set to double the terminal's current capacity and make it one of the biggest in the world.

Green groups had raised concerns about the Galilee project, saying part of the 8,000-hectare Bimblebox Nature Refuge would be destroyed by the development.

Approvals for the project include offsets for the loss of part of the refuge, which is used for bird migration research.

The complex is set to include four underground mines, two surface mines and associated coal-handling and processing facilities.

When the State Government gave conditional approval for the development in August, it said it had the potential to create 3,500 construction jobs and more than 2,000 operational positions.

Last month, the owner of the Bimblebox refuge said Mr Palmer should have resigned from his mining interests so the approval process for the coal mine was not compromised.