The licence is a big step for the new development, which is expected to start operations later this year.

“This is the first new bauxite mine in Australia for over 35 years and will introduce a new bauxite supply into the seaborne market,” Australian Bauxite chief operating officer Leon Hawker said.

“We look forward to continuing and further developing the relationships that have been built in Tasmania.

“Australian Bauxite can only operate with a strong social licence and however modest our contribution to local jobs, industry and the economy may be, we will make every effort to meet the expectations of our diverse stakeholders.”

A development proposal and environmental management plan for Bald Hill has been lodged with the Environmental Protection Agency, and is being sent to local councils to be put on display for 28 days.

Once the process is finished, a development approval can be granted and operations can start.

Along with Bald Hill, Australian Bauxite has delineated another two mines in northern Tasmania at Fingal Rail and the DL-130 prospect.

It also has extensive bauxite resources throughout New South Wales and Queensland.

The grant for Bald Hill is Australian Bauxite’s first mining lease, and Hawker acknowledged work from Tasmania’s Department of State Growth and EPA in securing the milestone.

He said the company had received strong community support for its development, which is in eastern Tasmania.

Australian Bauxite shares were last trading 6% higher at A26c.