BAUXITE extraction at Campbell Town has been praised by Northern Midlands Mayor David Downie.
Cr Downie said the mining operation, conducted by Australian Bauxite, would benefit the municipality.
"It's great we've got mining opening up in the Midlands," he said.
"It's another economic enterprise that's going to add to the economy."
Resources Minister Paul Harriss also showed his support for the development, issuing a media release late last month.
"Since the start of works in December, around 10,000 tonne of bauxite has already been mined at the site with around 7000 tonne screened," Mr Harriss said.
"The success of the Bald Hill Mine comes at the perfect time for Tasmania.
"The demand for our bauxite is high, the Australian dollar is low, and markets like China are emerging as major consumers of our product."
He said the government would seek to capitalise on the success of the project by supporting the mining sector and growing the state's industry.
Cr Downie said he was aware of the company's intentions to open another site within the Northern Midlands.
"They have indicated the next site would be in our area, but as far as I'm aware nothing has been submitted," he said.
"They're building access to the [Bald Hill] site and will cart the bauxite to Conara."
Campbell Town mining operations were developed on a $5 million capital budget and were running on schedule late last month.
The organisation's Bald Hill deposit holds a 1.6 million tonne resource.
Other sites near Campbell Town, including Fingal Rail and Nile, will be approached following the Bald Hill operation.