African Minerals has received government and parliamentary approval for a mining lease for the Tonkolili project in Sierra Leone, West Africa.
The company has been granted two large-scale mining licences, valid for 25 years and renewable for 15 years thereafter.
The company has also been granted an environmental impact assessment licence for the project.
The project will be developed with $1.75bn over the next two years.
The mine is expected to produce 35 million tons of iron ore a year between the first and second phases.