Up to 300,000 tonnes of kaolin ore will be mined on South Australia's Eyre Peninsula annually, with the state government rubber-stamping construction of the Great White project.
Andromeda Metals has received approval for its mine at Poochera under a permit with the Program for Environment Protection and Rehabilitation (PEPR).
Construction is expected to begin in the coming months and the mine should be operational by the end of the year.
Andromeda Metals managing director James Marsh says the approval is the last major milestone in the march towards mining operations, which will directly employ 40 people.
"There are plans to grow that number once we start, and the knock-on employment within the local area will be well over 100 jobs," Mr Marsh said.
"We've held a series of committee days at Poochera and Streaky Bay, and we were overwhelmed with people who are keen to get jobs.
"There's a lot of people who already work in the mining industry who do fly-in, fly-out and they would be very happy if they got a job where they could drive to work and drive home at night."
Mr Marsh says the mine will have a "significant impact" on the community and the company is "looking forward" starting once its funding is finalised.
"We need about 50 to 60 million [dollars] on top of what we already have, and we’re talking to a number of potential investors," he said.
Under the agreement with PEPR, Andromeda Metals must also pay a bond of $3.79 million to secure the rehabilitation liability and a further $665,000 into the Native Vegetation Fund.
Mineral used in porcelain, concrete
Kaolin is a naturally occurring, bright-white industrial clay that can be used for products such as paints, ceramics, cosmetics and fibreglass.
Mr Marsh says ceramic and concrete products will come from the first stage of the mine.
"What we have in the ground at Poochera is a very high-quality material for porcelain and the supply of those materials for porcelain around the world is drying up," he said.
"We're coming online at the right time where demand is still increasing, and supply is reducing.
"Our concrete additive is something we've developed, and it will allow cost savings and de-carbonisation of concrete."