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Capital costs for the development are around $A18 million, with an estimated 40 construction jobs to be created.
The development will allow Western Turner Syncline to maintain production at the current rate of 25-30 million tonnes per annum.
WA State Development Minister Bill Marmion said the approval was great news for resources and jobs.
“The development proposal was approved under a State Agreement and clearly shows these agreements ensure WA remains an attractive place for investment and continued development,” he said.
The approval comes weeks after the government approved Rio’s $US338 million Silvergrass development.
Rio expects to produce 330-340Mt of iron ore from the Pilbara next year.
Last month, the company celebrated 50 years since its first iron ore export from the Pilbara.
