Indian mining giant Adani has confirmed it will pursue a controversial plan to build Australia’s largest-ever coal mine in central Queensland, with predictions of up to 10,000 jobs.

But critics claim the move is a “desperate PR stunt”.

Ending months of speculation about the company’s intentions, the company’s board on Monday night signed off on the $16 billion project in Queensland’s Galilee Basin, which has split both the federal and Queensland Labor parties and infuriated environmentalists.

“I am proud to announce the project has final investment decision approval which marks the official start of one of the largest single infrastructure — and job-creating — developments in Australia’s recent history,” chairman Gautum Adani said.

“This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals.”

Speaking at the project’s headquarters in Townsville on Tuesday, Queensland Labor Premier Annastacia Palaszczuk said Adani’s decision would provide a boost to the local economy.

“A lot of people have lost jobs with the downturn in the resources sector and today is a vote of confidence not just in the Queensland economy, but in Queensland people,” said Ms Palaszczuk, who has been under political pressure over the project’s future.

“There will be jobs right across the state, this project will deliver those jobs.

“We want to make Queensland the investment choice state of the nation, and that’s what we are doing by diversifying our economy.”

Malcolm Turnbull met with Gautam Adani and senior executives in New Delhi. Photo: AAP

What is the Adani mine?

Adani says the project, about 160km north-west of Clermont in central Queensland, would be Australia’s largest thermal-coal mine and  “provide 10,000 direct and indirect jobs”.

The company made the announcement despite previously saying the project’s future was contingent on receiving a $1 billion loan from the Northern Australia Infrastructure Facility to build a 189-kilometre railway line to the proposed mine. The NAIF is yet to rule on the loan.

Opponents of the mine have pointed to the mining giant’s checkered environmental record, and argue the project will further damage the Great Barrier Reef, which they claim would in turn hurt the tourism industry.

It has also been suggested that coal prices would fall significantly, and exports from the nation’s biggest coal port in Newcastle would also be hit.

The company’s announcement did nothing to quell the howls of opposition from a number of environmental groups and The Greens, which labelled the move a “desperate PR stunt”.

They say the company is yet to obtain the funds needed to finance the project, which has been snubbed by the major Australian banks.

“This so-called final investment decision is meaningless, Adani is still broke, and 19 banks have refused to fund their deadly mega coal mine,” Queensland Greens Senator Larissa Waters said.

“Today’s announcement does not mean the mine will go ahead, it’s a grab for a $1 billion handout of public funds from the Northern Australia Infrastructure Facility.”

Stop Adani Alliance spokesman Geoff Cousins said Adani was yet to “lure any financial institutions willing to bankroll the project”.

“If the federal government hands Adani $1 billion of public money for this destructive mine that will destroy our Reef, we will consider all avenues, including legal action, to stop it,” he said. 

Federal resources minister Matt Canavan, who has strongly backed the project, said on Tuesday that the project’s benefits would extend beyond central Queensland to other parts of the country.

He also said the mine would help provide electricity for millions of people in India, taking a swipe at those who oppose the project.

“That does a lot more for the world, our globe, our environment, than anyone tweeting in air conditioned room in Sydney who might be opposed to it,” he said.

Pre-construction work is expected to begin later in the year.