Iron ore explorer Gindalbie Metals received final state environmental approval for the development of its Karara iron-ore project in Western Australia.

Approval was granted by Western Australia Minister for Environment Donna Faragher, clearing the way for on-site construction and development to move forward in the final quarter of 2009.

The decision is a milestone for Gindalbie and its joint venture partner AnSteel apart, as well as the entire mid west region, the explorer said.

The iron ore project, located located 225km east of Geraldton, will produce both DSO and high-grade magnetite concentrate over several decades, Gindalbie said.

The approval follows the July decision to uphold all key appeals lodged by the Karara Joint Venture in relation to the Environmental Protection Authority’s recommendations in May.

Before proceeding with on-site construction and development work, a final environmental sign-off is needed from the Commonwealth Government, which is expected in the next 30 days.