Deputy Premier Jeff Seeney has approved Barro Group's 52ha quarry extension at Mount Cotton.
The decision includes a number of conditions governing noise, dust, traffic, trees and hours of operation.
Under the approval, the Mount Cotton Road entry to the site will be modified with an upgraded intersection.
Hours of operation will also be reduced along with the annual extraction levels down from 1million tonnes.
Noise monitoring will be conducted from nearby homes and the quarry will have to plant five trees for every koala tree removed.
It will also have to show its expansion will not affect wildlife movement.
Mr Seeney said the Mount Cotton quarry would be subject to rigorous conditions including state planning provisions governing koalas and their habitat.
"This will mean 77,000 trees will be planted at the Mount Cotton site and quarry operators will need to demonstrate that fauna movement will not be affected."
Today's decision comes after the deputy premier called in the $30million project in September, following Redland City Council's refusal of the application in June and Barro Group's appeal in the Planning and Environment Court.
Barro Group's Mount Cotton quarry general manager Ian Ridoutt said he was elated a decision had finally been made and hoped initial earth-moving works could start as early as mid-February.
"We still have to assess all of the conditions but we are just glad the long wait is over and we can get on with work," he said.
"I'm staggered with the number of customers, suppliers, neighbours and employees across the state who have wished us success and supported this application. It shows the community is well behind us."
Cornubia residents Luke and Jean Daglish, who have campaigned for more than nine years to halt the extension, said they were "devastated" with the decision.
"If any of these conditions are broken, the residents of Mount Cotton and Cornubia will be on to the quarry like a tonne of bricks," Mr Daglish said.
"The Goss government ruled this area would remain as acreage when it zoned it part of the Koala Coast in 1995 but then, in November 2004, the government removed the koala protection, just for the quarry site.
"Campbell Newman and Jeff Seeney both said they would be leaving all these decisions to the local councils and community.
"Now they have gone completely the other way which shows democracy has died."
A Redland City Council spokesman said the deputy premier had taken into account concerns raised by council and the community.
"While this decision will not please all, the fact the government has imposed very stringent conditions on the development ensures many concerns will be addressed."
Redlands MP Peter Dowling said he was relieved the decision had finally been made.
"It removes the uncertainty and addresses many of the issues raised by concerned residents," he said.
"This is the most stringent suite of conditions ever imposed on a quarry in Queensland and reflects the significance of community engagement.
"It is a vital resource but will be extracted in a responsible manner that will cause the least harm and concern."
Along with today's Mount Cotton decision, Mr Seeney also announced a new quarry would be built on the Gold Coast.
He said both quarries were necessary for the state's construction industry which faced a depletion of quarry material by 2020 and both would create "hundreds" of jobs.
Today's approval has been a long time coming with Barro Group's initial application to extend its operations first lodged with council in 2006.
But council's Development Assessment Committee refused it on November 20, 2007, forcing Barro to appeal in the Planning and Environment Court.
On June 12, 2009, the court struck out the request saying it was not "properly made" and Barro was not entitled to use Gramzow Road, bordering the site.
Since then, roads, traffic and truck movements have featured prominently in arguments against allowing the extension.
The development application approved by Mr Seeney today was put on the public record in 2011.
The Department of Natural Resources and Mines and the Department of Environment and Heritage Protection issued approvals for the project to Redland City Council in January 2013.
However, both departments issued extensive lists of conditions with their approvals.
The Transport Department issued its approval and associated conditions to Redland City Council in 2011, before the council refused the application on June 5.
