Conservationists are calling the approval of a second mine in as many weeks in Tasmania's Tarkine blatant ALP electioneering.
Green groups have been dealt a second blow with federal environment minister Mark Butler giving the go-ahead to a Venture Minerals iron ore proposal at Riley Creek in the contentious northwest region.
The approval comes despite a challenge to the state government's approval still pending in Tasmania's Resource Management and Planning Appeals Tribunal.
Just last week Mr Butler gave the green light to a $20 million Shree Minerals' iron ore mine at Nelson Bay River in the Tarkine.
Environmentalists say the decisions are attempts by federal Labor to hang on to the vulnerable seat of Braddon.
"The minister has raced to rush this out for a perceived electoral gain," Save the Tarkine spokesman Scott Jordan said in a statement.
"This is a shameful decision that further compromises the integrity of Tarkine."
Mr Jordan's group is behind the planning tribunal appeal and the federal court action that temporarily halted work on the Shree project last month.
Tasmanian Greens senator Peter Whish-Wilson said mining was not a long-term solution to Tasmania's nation-high unemployment rate of 8.1 per cent.
"It's a short-term political decision, made on the first day of the election, to prop up a Labor MP in a marginal seat," he said.
But the Tasmanian government said the Riley Creek project would inject $40 million into the struggling northwest's economy.
"The northwest and west coasts have some of the most highly mineralised and prospective areas in the world and I am confident we will see more new mines in the region," Deputy Premier Bryan Green said.
The Tarkine is home to one of the last populations of Tasmanian devils free of the facial tumour disease which has wiped out up to 80 per cent of the species, and to the largest temperate rainforest in the southern hemisphere.
Minister Butler said Venture, which is also proposing two other mines in the area, would be subject to 37 environmental conditions.
They include $144,000 to help fight the tumour disease.
Tasmania's Liberal opposition said the conditions meant too much "green tape" for investors.
