The Liberal National Government has approved development of iron ore deposits at Rio Tinto's Western Turner Syncline mine near Tom Price in the Pilbara.
State Development Minister Bill Marmion said capital expenditure on the project was expected to be $18 million, with 40 construction jobs to be created.
"The Western Turner Syncline production capacity is currently 25 million tonnes to 30 million tonnes per year," Mr Marmion said.
"The approval will ensure Rio Tinto can maintain this level of production by bringing new sources of ore online.
"This is great news for resources and great news for Western Australian 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."
Works covered by the approval include the development of deposits to the north and west of the existing mining operation, and associated works such as the construction of haul roads, site access roads, storage areas and water treatment facilities.
The Western Turner Syncline development proposal was approved under the Iron Ore (Hamersley Range) Agreement Act 1963
Earlier this month, the State Government approved the expansion of Rio Tinto's Silvergrass iron ore mine, near Tom Price
in 2015, WA's iron ore exports were valued at $49.8 billion
Rio Tinto celebrated 50 years of iron ore exports from the Pilbara in August this year
Rio Tinto operates 15 mines in WA and about 1,700km of dedicated railway
Minister's office - 6552 6800