A West Coast mining plan which has inspired a string of protests and arrests will need full assessment under federal environmental law.
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The federal Environment Department on Monday said Rosebery miner MMG's tailings storage proposal west of the mine was a controlled action under the Environment Protection and Biodiversity Conservation Act.
It would be assessed under a bilateral agreement with Tasmania, meaning the state Environment Protection Authority would play a crucial role.
The environmentalist Bob Brown Foundation has led opposition to the MMG proposal, saying it would lead to a "toxic waste dump" in Tarkine rainforest.
Supporters of the project argue the area is far from pristine, and has been logged several times and had fires through it.
Both sides of the debate recently pushed their cases with federal Environment Minister Sussan Ley, who visited the site with mining company representatives and discussed the matter with the Bob Brown Foundation.
The Environment Department said listed threatened species and communities were the relevant provisions in the decision the project was a controlled action.
he long-running mine mine will only survive for a few more years if alternative tailings storage is not developed.
The company has spoken of having alternatives to the contentious site.
The Bob Brown Foundation argues it should choose an alternative site.
MMG says its priority is protecting the operation and the 500 jobs it supports.