Premier and Minister for Trade Annastacia Palaszczuk said the announcement was a key part of Government's strategy to support a diverse economy in the North West and create more jobs for locals.

"This facility will create 65 jobs during construction and bring ongoing benefits to the region," Premier Palaszczuk said.

"It's just one of 13 innovative diversification initiatives that tap into the potential of the North West, and further proof that by working together with local councils and the community, we can grow Queensland's economy.

Minister for State Development and Minister responsible for the Queensland Drone Strategy Cameron Dick said construction of the new facility was scheduled to begin early-2020.

"The Palaszczuk Government is creating more jobs in more industries, bringing world-class, cutting-edge aerospace technology to the Queensland outback," Mr Dick said.

"Our government was the first in Australia to launch a drone strategy, and now we're well on the way to becoming the nation's drone technology capital.

"We have secured the world's largest aerospace group, The Boeing Company, to be the first to conduct trials at the facility, creating an exciting new aerospace industry for the region."

Boeing Director of Phantom Works International Shane Arnott said the company was looking forward to using the flight facility in 2020 to safely and securely test the latest advances in unmanned systems technology.

"The creation of what will be one of the world's largest commercial unmanned flight test facilities is critical to establishing Australia as a global leader in autonomous technology," Dr Arnott said.

The Palaszczuk Government will invest $14.5 million in the first stage of the facility, which will be built on airport land and include a hangar, operation room and surveillance radar and communications equipment.

The facility will test small-to-medium sized drones weighing between 30-150 kilograms.

Mr Dick said during the initial stages of operation drones will make test flights over short distances of up to 25 kilometres along a designated flight path away from built-up areas.

Cloncurry Shire Council Mayor Greg Campbell said the announcement was a major win for Cloncurry and the North West.

"This will create a hub for aerospace R&D that will be a new high-tech industry for the region, to create jobs and boost the local and state economy," Cr Campbell said.

Cloncurry was shortlisted in 2018 with Ilfracombe for the facility.

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