Mining giant Rio Tinto has given the nod to its massive $US1.9 billion ($A2.63 billion) South of Embley bauxite expansion project in northern Queensland.
Rio said the long-awaited approval would boost the company's annual bauxite exports from Cape York by around 10 million tonnes per year as conditions in aluminium markets improve.
The global miner plans to initially produce 22.8 million tonnes of bauxite per year from 2019, replacing production from the depleting East Weipa mine 40 kilometres away.
The project gives Rio the option of expanding production to 50 million tonnes a year in the future.
Rio has also changed the name of the mine to the Aboriginal word Amrun, a traditional indigenous name for the area.
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The expansion project involves construction of a bauxite mine as well as processing and port facilities on Queensland's Cape York Peninsula.
Chief executive Sam Walsh said Rio was establishing Cape York bauxite as the product of choice for the Chinese seaborne market in its biggest single investment this year.
"Amrun will be significant in helping to meet growing bauxite demand from China," Mr Walsh said in a statement.
He said Amrun was one of the highest quality bauxite projects in the world.
Production and shipping from the mine is expected from the first half of 2019.
The project has stalled in recent years amid concerns about an increase in shipping movements near the Great Barrier Reef.
Most of the capital expenditure for the Amrun project is scheduled for 2017 and 2018.
Queensland Premier Annastacia Palaszczuk said it would be the single largest private investment outside the southeast of Queensland in "many many years".
Rio Tinto has been cutting costs this year due to weaker commodities prices, particularly its key export of iron ore.
The company made a half year net profit of $US806 million, down 82 per cent, but Aluminium profit more than doubled to $US793 million in the six months to June 30.
Rio Tinto expects around 1100 people will be employed for the construction of the project.
Rio is the world's second biggest bauxite miner.
Shares in the company were 21 cents lower at $46.28.
