ABOUT 400 jobs are expected to be created at Caval Ridge Mine, with engineering giant Monadelphous securing a $100million contract to build the mine's coal handling plant.
Construction will begin immediately at the BHP Billiton Mitsubishi Alliance owned mine, which is situated south-east of Moranbah.
Mackay Area Industry Network managing director Narelle Pearse said it was good to see things progressing well at the mine.
"The main thing for us, we are very keen to see local businesses benefit from the sub-contracting opportunities," Ms Pearse said yesterday.
"It would be good to see the work and jobs are retained in the region."
The construction news is expected to breathe fresh air into the industry, which has felt the impact of several job cuts in the past few months.
"Considering things have slowed down, the creation of new jobs is a positive thing," Ms Pearse said.
The deal between BMA and Monadelphous consists of civil, structural, mechanical, piping and electrical and instrumentation work for the coal handling plant.
The project is set to be finished by the fourth quarter of 2013. This means things are on track for the new mine as coal production is set to ramp up by 2014.
About 500 employees will be needed to run the mine site which covers 6707ha in the Isaac Regional Council area.
Caval Ridge Mine will consist of open-cut dragline, truck and shovel operations.
The total construction will create 2000 jobs.