Australian Bauxite received approval for its Bald Hill mine, near Campbell Town, early this month and site mobilisation is now in progress.

The $6 million project is expected to be in full production by July.

The company said the small capital outlay and short development time gave the operation an edge in the resource industry.

“Based on the current bauxite price of around $65-70 a tonne, operating margins will be robust,” a stock market report said.

“Financial success at Bald Hill would certainly de-risk the company’s Fingal Rail and DL-130 bauxite deposits, which have similar development and operational characteristics.”

Bald Hill will be able to produce 440,000 tonnes of direct shipping ore a year.

The company aims to be shipping two million tonnes of DSO bauxite out of Bell Bay within two years.

Thirty workers will be needed when mining starts at the 205ha site.