Doral, wholly owned by Japan's Iwatani Corporation, is planning to produce 250,000 tonnes per annum of ilmenite and zircon.

The project includes the development of mine pits, solar evaporation ponds, a wet concentration processing plant and water management infrastructure.

Heavy mineral concentrate will be stockpiled onsite and trucked to Doral's mineral separation plant in Picton, 60km to the north-east.

The EPA approved the proposal subject to conditions, including minimising the impact to the Carnaby's cockatoo habitat.

EPA deputy chair Lee McIntosh said the proposed operation would sit on 453 hectares of predominantly cleared agricultural land, about 6km north-east of the company's existing Yoongarillup mine.

"The proposal had the potential to impact on up to three threatened ecological communities, one threatened flora species and a conservation-significant fauna habitat," she said.

"Through the environmental impact assessment process, the proponent has committed to avoid clearing these threatened and significant areas.

"They were also required to prepare management plans to demonstrate how they would manage potential operational impacts such as groundwater drawdown."

The EPA has recommended Doral prepare an Abba River Management Strategy in consultation with the South West Aboriginal Land and Sea Council.

The EPA's report to the Minister for Environment is now open for a two-week public appeal period, closing February 1.