The expansion of a controversial Queensland coal mine has cleared another hurdle, with the state's environment department issuing a draft authority for the $900 million project.

Key points: Expansion of Acland mine to boost output to 7.5 million tonnes

Expansion of Acland mine to boost output to 7.5 million tonnes Without approval, mine will run out of coal in 2017-18

Without approval, mine will run out of coal in 2017-18 Opponents say expansion will have negative environmental impacts

Opponents say expansion will have negative environmental impacts Questions over company donations to the state LNP, federal Liberal party

The ABC has obtained a copy of the 68-page environmental authority, which sets out conditions for the enlargement of the Acland coal mine on the western Darling Downs.

The decision has sparked calls from the Speaker of Queensland's Parliament for the state's corruption watchdog to investigate hundreds of thousands of dollars in political donations made by the mine's owner.

The project would expand the Acland mine's annual output from 4.8 million tonnes to 7.5 million tonnes, with proponents New Hope Group arguing the project would create hundreds of jobs and boost the local and state economies.

"We welcome news the draft environmental authority has been issued," Queensland Resources Council chief executive Michael Roche said.

"Without approval for Stage 3 of New Acland, the mine will run out of coal in 2017-18 and [the jobs of 460-plus people] will be lost."

But opponents, including landholders near the Acland mine, claim the mine expansion will worsen air quality, swallow up nearly 1,400 hectares of strategic cropping land and cause groundwater to drop by almost 50 metres in some places.

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"It has been acknowledged that there will be substantial drawdown of groundwater and that this is likely to impact on 357 registered bores, as well as other water users," Tanya Plant, a beef and grain farmer who lives about two kilometres from the mine, said.

"That significant drawdown of water aquifers will occur for at least 300 years after the end of the mining operation."

While giving New Hope an environmental authority for the expansion, the environment department has placed conditions on the project covering issues such as air quality, dust emissions, noxious odours, noise, water quality and contamination limits.

But Dr Plant said the environmental authority had failed to follow key conditions imposed by Queensland co-ordinator general Barry Broe when he approved the expansion last December.

"The draft environmental authority (EA) does not limit their night-time operation and it doesn't seem to actually require any monitoring of noise to ensure that these levels aren't being breached," Dr Plant said.

"The draft EA also seems to have included a condition that specifically protects the mine against claims of causing environmental nuisance even if it is causing more dust at people's homes than the limits the government policies set to protect health and wellbeing.

"It also specifically does not set any limits to PM2.5, which are very small particles of dust that the Queensland Government's own policies — as well as numerous other organisations including the World Health Organisation — recognise as also being very important for human health."

The co-ordinator general approved the expansion of the mine last year despite the project requiring the "clearing of eight endangered and of-concern regional ecosystems" including koala habitat, issues regarded as "matters of state environmental significance".

The co-ordinator general's report confirmed 1,361 hectares of strategic cropping land would be affected by the expansion.

Questions over New Hope political donations

The ABC revealed last year the New Hope Group and its Australian parent company, Washington H Soul Pattinson, had donated $700,000 to the Queensland Liberal National Party and the federal Liberal Party over a three-year period.

Last week, anti-mining group Lock the Gate Alliance lodged a complaint with Queensland's Crime and Corruption Commission (CCC) alleging the LNP government of Campbell Newman reversed its opposition to the Acland mine expansion during the period in which New Hope and its parent made the donations.

"Queensland Labor promised during the election campaign to scrutinise the approval process for the mine," Lock the Gate president Drew Hutton said.

"They promised a full CCC inquiry in relation to political donations issues. Neither of those things happened."

Michael Roche of the Queensland Resources Council said Lock the Gate's complaint was "a predictable tactic out of the anti-coal strategy playbook to seek to disrupt and delay projects like New Acland".

"We will leave it to the CCC to deal with this matter," he said.

The Speaker of the Queensland Parliament, Peter Wellington, told the ABC he also wanted the New Hope donations investigated.

"One of the issues I raised with [Premier Annastacia Palaszczuk] was to look at the possible connection between significant donations and particular decisions," Mr Wellington said.

"I will be interested to see how the new head of the CCC [Alan MacSporran] will act on this.

"One of the issues here is following the money trail. It's important to know that there's been no inappropriate influence exerted."

This year, Mr Wellington asked the company about royalties generated by the mine.

In response, New Hope chief executive Shane Stephan wrote to the Speaker and revealed the company would receive about 77 per cent of the royalties generated from its Acland mine, while the state would get only 7 per cent.

By buying up most of the land around the mine, the company has taken advantage of a pre-1910 loophole that requires royalties to be paid to private landholders rather than the state.

"One of the furphies the previous government promoted was the benefit of significant royalties that would come to the taxpayer. Clearly this is not the case," Mr Wellington said.

"We've had this mantra from successive governments that coal mining is the backbone of Queensland, but the facts show this is not the case.

"However, farming is a long-term benefit to our society."

It is believed landholders will now challenge the environmental authority in Queensland's Land Court, with the ABC told an objection is ready to be lodged.

Federal Environment Minister Greg Hunt will also assess the project under the Environment Protection and Biodiversity Conservation Act.

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