Poseidon Nickel has received conditional State Government approval to recommence mining at the historic Mt Windarra nickel mine near Laverton.
The Andrew Forrest-chaired explorer said its application included all of the necessary environmental and infrastructure approvals which had been assessed by the Department of State Development and other agencies over the past few months.
A final formal approval is subject to Poseidon demonstrating that it has project financing and offtake contracts in place by June 30 next year.
Poseidon managing director and chief executive David Singleton said the milestone gave statutory approval for the project subject only to final financing and offtake.
"We recently announced the completion of the definitive feasibility study for the project and as announced previously are continuing our preparations for financing," he said.
Poseidon is targeting initial concentrate production by 2014.
The concentrator plant to be constructed at Mt Windarra is expected to have a minimum throughput capacity of 700,000 tonnes of ore per annum.
The Mt Windarra mine originally prompted the so-called Poseidon bubble of the late 1960s.
Poseidon shares were up half a cent to 11 cents at 8.20am.