ABC News reported that a West Australian company has been granted a lease to mine iron ore in Tasmania's Tarkine region on the west coast.
Venture Minerals said that it is a significant step towards building the project at Riley Creek, near Tullah. But the project still needs environmental approval.
Mr Bryan Green minister of Resources said that the Commonwealth and State are working together. It just needs the environmental approvals now.
Mr Green said that "This is a very significant next step, so it is important that people understand that there is another process to be followed and that's environmental approvals. But we're able to do that on a bilateral basis."
The Riley mine is expected to employ 60 people and will help fund a bigger tin mine at Mount Lindsay, worth about USD 200 million.
In a statement to the stock exchange, Venture Minerals says the lease is for a deposit which is less than two kilometer from a sealed road.