Reuters reported that Australia approved miner Rio Tinto's USD 1 billion plus South of Embley bauxite mine and port project in Queensland after a year's delay due to concerns about ships harming the Great Barrier Reef.

Mr Tony Burke environment minister of Australia said that the project on the Cape York Peninsula could go ahead subject to several strict conditions that will protect marine life and the Great Barrier Reef from shipping movements.

The South of Embley project could produce up to 50 million dry product tonnes a year of bauxite which could supply the company's alumina refineries in Gladstone and Yarwun and boost Rio Tinto's bauxite exports.

Major miners are looking to step up bauxite exports to China, whose appetite has risen sharply as it has boosted production of alumina. It takes four tonnes of bauxite to make two tonnes of alumina and one tonne of aluminium.

Rio Tinto said that it would comment on the government's approval later on Wednesday. The Anglo Australian company has long said that it would only decide on whether to go ahead with the South of Embley project after receiving all government approvals.