UPDATE 14/10: Prime Minister Tony Abbott has spoken at the opening of the Caval Ridge mine, saying 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."

"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, not mentioning the entirely fly-in-fly-out workforce.


ORIGINAL STORY: Prime Minister Tony Abbott will be on site for the official opening of BMA’s new Caval Ridge coal mine in Moranbah.

The big dig is set to produce about 5.5 million tonnes of hard coking coal a year, after a lengthy construction phase with a total bill estimated around $4.2 billion.

The mine will employ more than 500 fly-in-fly-out workers as its staff, drawing controversy with the decision not to hire from within the local community.

Federal Member for Capricornia Michelle Landry, who campaigned hard to have at least a few local jobs offered, will be at the opening too.

The product produced at Caval Ridge is reportedly not one of those recently placed under renewed Chinese import restrictions.

BMA has caused further outrage in recent weeks, announcing it will sack 700 workers across seven mines run by BMA - the BHP Billiton Mitsubishi Alliance.

To add insult to injury for many workers with their jobs on the block, the Construction, Forestry, Mining and Energy Union (CFMEU) claims BMA has now readvertised some of the previously permanent jobs as contract work for much less money.