Bauxite Australia granted lease to start new mine in Tasmania

A Sydney-based company has cleared the first hurdle in its plans to establish a new mine in Tasmania after being granted a mining lease.

Australian Bauxite was granted approval to start up an operation near Campbell Town where it hopes to produce 1.5 million tonnes of aluminium oxide which will be exported from Bell Bay.

The Bald Hills quarry would have a life of about five years but the company hopes to continue operations at two other sites proposed near Campbell Town and west of Launceston.

The lease covers an area of 205 hectares with a maximum disturbed area of 41 hectares.

Australian Bauxite chief executive Ian Levy said the world market for bauxite was very strong.

"But it won't last forever so over the years we've got to become smarter and smarter so it might start as a quarry but I'm hopeful that it will end up as a fairly sophisticated mining and processing technology," he said.

Resources Minister Paul Harriss said the new mine promised to create at least 30 new jobs.

"This is an exciting project that will both create jobs and economic activity, while showcasing the mineral diversity and potential of Tasmania," he said.

"Subject to other necessary approvals, the company expects that preliminary work will start next month and the new mine will commence operations by December."

The development comes after a tumultuous year for mining in the state which has seen closures, falling prices and environmental battles.

With the downturn in the forest industry many have turned to the mining sector to fill the employment gap but this has become increasingly difficult with hundreds of jobs lost in the last few months.