Prime Minister Tony Abbott says coal is "good for humanity" and will be the "world's main energy source for decades to come" as he opened a new $3.9 billion coal mine in central Queensland.

The BHP Billiton Mitsubishi Alliance (BMA) Caval Ridge coal mine, south of Moranbah in central Queensland, will employ 500 fly-in, fly-out (FIFO) workers.

BMA said the new mine, the company's eighth in the region, would produce about 5.5 million tonnes of coal each year.

Speaking at the mine's opening, Mr Abbott said coal should not be demonised.

"Coal is good for humanity, coal is good for prosperity, coal is an essential part of our economic future, here in Australia, and right around the world," he said.

"This is a sign of hope and confidence in the future of the coal industry - it's a great industry, we've had a great partnership with Japan in the coal industry.

"Coal is essential for the prosperity of the world.

"Energy is what sustains our prosperity, and coal is the world's principal energy source and it will be for many decades to come."

Mr Abbott said the mine would benefit the central Queensland region despite it exclusively employing FIFO workers.

"This mine is going to contribute some $30 million to the local economy so it's much better for the local economy that we have this mine," he said.

Prime Minister's comment 'short-sighted'

Queensland Greens Senator Larissa Waters said Mr Abbott's comment that coal was good for humanity showed the Prime Minister was out of touch with the reality of the climate change.

"People will be shaking their heads in disbelief at the Prime Minister's alarming comment today, and future generations will wonder how our Prime Minister could be so short-sighted," Senator Waters said.

"While our Prime Minister continues to ignore reality, Australians understand coal is threatening our very way of life and our planet, with global warming, sea level rise and acidification and more extreme weather events."

She said Mr Abbott was ignoring global pleas for Australia to "stop digging up climate-destroying coal".

"Instead [Mr Abbott is] ticking off on more mega-mines to dramatically increase our national contribution to climate change and threaten job-rich industries which rely on a healthy climate," she said.

"Tony Abbott and [Queensland Premier] Campbell Newman's insane coal-at-all costs agenda is destroying the climate and putting the sustainability of Queensland's economy at great risk."

She said Australia had renewable alternatives that could provide sustainable local jobs.

"But Tony Abbott is threatening renewable investment and putting the big mining companies ahead of Queenslanders and the climate," she said.

FIFO mines hurting Queensland communities, union says

BMA last month sacked about 700 workers from its Queensland operations, including some workers at Caval Ridge.

The Construction, Forestry, Mining and Energy Union (CFMEU) said Mr Abbott should put pressure on BMA to prioritise local workers over FIFO employees.

CFMEU spokesman Stephen Smythe said the company was continuing to employ more casuals at the cost of permanent staff.

Mr Smythe said BMA's decision to employ only FIFO workers at its mines was hurting Queensland communities.

"It's an opportunity for the Prime Minister to actually see the poor state of affairs in these mining communities, not just with the issues of compulsory FIFO, but with the issues of casualisation and the industry generally," he said.

"We're not against FIFO operations - we're against the compulsory approach which BMA have taken - it's about opportunity and choice for all workers."

Mr Smythe said Mr Abbott should advocate for local workers.

"He'll go through his own contacts with the likes of [Queensland Premier] Campbell Newman and other ministers within the state of Queensland," he said.

"They belong to the same party - they could actually start representing those people broadly about all these issues and take it on board and actually realise that along with casualisation, this compulsory type of employment is actually killing these communities."