Coal producer Linc Energy Ltd (ASX: LNC) said on Wednesday that it has sold its mining rights at the Galilee Basin exploration site, located in central-west of Queensland, for $500 million to Adani Enterprises of India.

The company said that the agreement would result to substantial economic opportunities for the state and is now regarded as the biggest single business investment poured by an Indian firm in Australia.

Apart from the initial cash payment of half a billion dollars, Linc is set to receive additional $2.5 billion as royalty for the mining operation which would paid over the first 20 years of coal production.

Linc Energy chief executive Peter Bond said that the Indian company has already secured the necessary approval from the Foreign Investment Review Board for the transfer of the project and the state government already gave assurance that the deal would gain its support.

Adani, according to Mr Bond, is set to establish a giant coal mine that would operate on the Galilee Basin, which he added would be fully integrated from mines to power station.

He said that the Galilee operation promises to be the production jewel of the Indian company on its coal mining operations in the region as he added that Adani also maintains a coal mine in Indonesia.

The whole process of establishing and operating the mine site would create several thousand of jobs for Queensland and by the time the operation gets fully underway, Mr Bond said that up to 1100 persons would be employed by the project as full-time workers.