The state government has granted a mining lease to a controversial hematite mine located in the Tarkine.
Venture Minerals, which is proposing three mines in the area, said the lease was a ``major step forward for the company''.
Venture still needs Commonwealth environmental approval for all three proposals.
The mining lease for its Riley direct shipping ore project comes just days after the federal government approved Shree Mineral's Tarkine mine.
The area, which is under world heritage assessment, is looming as the next environmental battleground in Tasmania.