A mining exploration company has discovered a significant new bauxite deposit in northern Tasmania.

Australian Bauxite began mining at Bald Hill near Campbell Town earlier this year in what is understood to be Australia's first new bauxite quarry in 35 years.

Chief executive Ian Levy said the company may soon expand its activities to a site near Bell Bay, where it has found a new bauxite deposit.

"It's very exciting. We've named it Portside because we can see the port of Bell Bay," he said.

"It's north of Launceston, south of Bell Bay and it's right on the main road systems there which are very high productivity roads and we're hoping that it'll be a future production centre."

Early drill samples suggested the deposit was of good quality.

"It's a particular category of bauxite that there is a global shortage of, particularly in the Pacific basin," Mr Levy said.

"There should be strong ongoing demand for the next 10 or 20 years.

"Each particular mine we'll probably mine for about three or four years, rehabilitate it and then return it to the landowner, hopefully in a better state than what we found it, and then we'll move onto the next deposit."

But Mr Levy said there was still plenty of work to be done before the company began full-scale mining at the new site.

"The first thing is to conduct a very, very thorough ecological survey which is best started in spring time," he said.

Company hopes to create more jobs

Australian Bauxite began production at its first Tasmanian site - the Bald Hill mine - earlier this year.

Mr Levy said the mine there was progressing well.

"The team are probably 95 per cent proficient in what they're doing," he said.

"We're hoping to be able to achieve half a million tonnes a year."

About 30 people are employed at the mine, but Mr Levy said that was expected to increase in coming months.

"Maximum employment will be around 45 direct employees that are involved in the process," he said.

"In total, there'll be about 180 families that will benefit from our project because of the multiplier effect from our suppliers of equipment and the like."

Australian Bauxite is expecting to start exporting product from Bell Bay later this year.