The Tasmania Government has approved Australian Bauxite's (ABx) first mining lease at the Bald Hill project.
The ML1961 lease covers a 205ha area adjacent to Macquarie Road, with a maximum disturbed area of 41ha.
As per the plans, more than 1.6 million tonnes of bauxite is estimated to be mined from three pits on the lease site for domestic and international markets.
Preliminary work is expected to commence in October this year to start operations by December.
Tasmania Minister of Resources Paul Harriss said: "This is an exciting project that will both create jobs and economic activity, while showcasing the mineral diversity and potential of Tasmania."
ABx CEO Leon Hawker said: "This is the first new bauxite mine in Australia for over 35 years and will introduce a new bauxite supply into the seaborne bauxite market.
"We look forward to continuing and further developing the relationships that have been built in Tasmania.
"ABx can only operate with a strong social licence and however modest our contribution to local jobs, industry and the economy may be, we will make every effort to meet the expectations of our diverse stakeholders."
ABx's main asset is the core of the Eastern Australian Bauxite province and the company's 37 bauxite tenements are located in Queensland, New South Wales and Tasmania, covering an area of 8,500km2.
The company said it aims to discover bauxite resources of more than 200 million tonnes in the Eastern Australian Bauxite province.
Image: Bald Hill Mining Lease ML1961 covers Campbell Town in Tasmania. Photo: courtesy of Australian Bauxite.