London Mining has received parliamentary approval for the Marampa iron ore project in Sierra Leone, West Africa.
The project is the first comprehensive mining agreement to have been passed under the country's new Mines and Minerals Act.
The parliament has granted approval for the project's fiscal incentives, proposed mine and logistics plan and environmental clearance.
The company will immediately start its operations with full development at 1.5Mtpa for an initial investment of $80m and will continue to expand until it reaches 5-8Mtpa of production by 2013.
The company said it will work to secure the main long lead items including the wet high intensity magnetic separation plant, barges and floating cranes.