Tasmania's struggling mining industry has received a boost, with civil construction work getting underway at a new bauxite mine in Tasmania's Midlands.

There has not been a new bauxite mine in Australia for 35 years and the ore is in short supply worldwide.

The mine's general manager, Rob Williams, said Australian Bauxite Limited plans to mine two million tonnes of the aluminium ore at its Bald Hill quarry near Campbell Town.

"The mine itself will probably last three to four years but we have two other mines we're going to bring on-stream as soon as we get them through the approval process," he said.

The company's chairman and former Labor premier, Paul Lennon, said international market conditions are perfect.

"The price for bauxite is strong and that's what's given us as board the confidence to invest about $10 million here in Tasmania to open up bauxite mining," he said.

"Here at Bald Hill, a bit further up the road at Fingal, and out close to Hagley are the three sites that we've identified commercial quantities of bauxite."

It is expected eight to 10 years of mining will be possible.

Mr Williams said the bauxite will be shipped from Bell Bay in the state's north to aluminium producers in Australia and overseas.

"This particular bauxite is a very attractive bauxite, it processes using lower energy requirements and so this product itself if we put together enough of it will represent a niche in the market," he said.

It is the raw material for aluminium and will be trucked to Conara before sent via rail to Bell Bay and shipped on China.

The mine will employ 45 people directly and create work for about 135 others.

It is a boost to the area which recently suffered 20 job losses at the nearby Cornwall Coal mine in Fingal.

Tasmanian Resources Minister Paul Harriss toured the site where production is due to start early next month.