Cameco and Mitsubishi have been granted conditional federal environmental approval for the Kintyre uranium mine development in eastern Pilbara in Western Australia.
Scope of the approval takes account of the conditions covering radiation, ground and surface water and terrestrial fauna, as well as mine closure.
Developers are expected to meet the conditions before starting with mine construction works.
According to a statement published by the government of Western Australia, the proposed project is expected to commence within five years.
Western Australian Environment Minister Albert Jacob had approved the project in the previous month.
Construction plans comprise an airstrip, processing plant, waste rock dump, tailings storage facility, offices, accommodation and a new haul road; however, faltering uranium prices have halted development plans, reports Yahoo News.
Four uranium projects are currently underway in Western Australia, which received more than $300m of investment for uranium exploration following the removal of the mining ban by Liberal National Government in 2008.
WA Mines and Petroleum Minister Bill Marmion said: "With positive signs for a price recovery, including recent progress on an export agreement between Australia and India, these mines could be exporting $1bn worth of uranium by 2020.
"Importantly, they will generate more than 1,500 jobs during the construction phases and 500 jobs once in production."