Environmental checks into a new steel mill proposed for Gladstone at Aldoga, were announced by Premier Anna Bligh this morning.
The mill was first announced in March this year by Infrastructure Minister Stirling Hinchliffe, suggesting it could create 1150 jobs in Gladstone by 2012.
Sydney-based firm Boulder Steel announced in March its intentions to push ahead with Australia's newest steel manufacturing plant.
Boulder Steel expected its new mill would export 2.1 million tonnes of steel per annum over two stages with each phase of the project expected to cost $1.4 billion to construct.
Last week the company announced it had finalised a Memorandum of Understanding (MOU) to build a rail steel company in Saudia Arabia with a company set up by a member of the Royal Saudi Family.
Premier Bligh this morning said the proposed steel plant in Gladstone must first pass environmental tests.
"But first it must undergo a rigorous environmental assessment. The terms of reference set out what the environmental impact assessment process must address," Ms Bligh said.
Energy for the steel mill is proposed to come from a company producing electricity from waste gas.