Queensland's coals range in age from Carboniferous, 350 million years (Ma) in age, to Tertiary (65 Ma). The commercially significant black coals are restricted to deposits within sedimentary basins of Permian (280 Ma), Triassic (250 Ma) and Jurassic (200 Ma) age, located mainly in the central and eastern portions of the state.

The coal deposits of Permian age are by far the most commercially important. Of the State's black coal inventory totalling in excess of 30 billion (x109) tonnes (measured and indicated resources), Permian coals account for approximately 75% of the total resources, including almost 100% of the coking coal and about 60% of the thermal coal resources. Permian coals within the Bowen Basin in central Queensland account for approximately 70%, of the State's coal inventory while Mesozoic coals found mainly in the Clarence-Moreton, Surat, Callide and Tarong basins make up the remainder. Shallow coal potentially amenable to open-cut mining makes up about 55% of the inventory, with the remaining 45% present at greater depths.

The most important Permian coal basin is the Bowen Basin, which is exposed in a large, triangular-shaped area of central Queensland, 600km long and up to 250km wide. The basin extends south in the sub-surface beneath Mesozoic sediments of the Surat Basin, and connects with the Gunnedah and Sydney Basins in New South Wales.

Along the structurally disturbed north-eastern edge of the Bowen Basin, the coals range in rank from anthracite to low volatile bituminous, and deposits tend to exhibit a complex structure. Coals in the central part of the basin are medium to high volatile bituminous and include the best coking coals. Structural deformation in these deposits is generally relatively mild.

In the southwest, the coal rank falls below the coking range with a consequent loss of coking properties. The more significant deposits in this region are usually low ash non-coking coals and generally are not affected by major structural deformation apart from normal faulting. The westerly decrease in rank continues across the Springsure Shelf and into the Galilee Basin.

North Goonyella mine is an underground longwall mine, approximately 160 kilometres (km) west of Mackay and the Dalrymple Bay port. It produces a high strength coking coal for export, utilising longwall top coal caving methodology. The mine produced 2.5 million tonnes (mt) of saleable coal in 2014. Mining commenced at North Goonyella in 1994 and Peabody Energy acquired the operation in April 2004.