Murchison Metals has received approval for the Jack Hills Expansion Project from Western Australian Environment Minister Bill Marmion.

The minister’s approval follows a favorable recommendation by the Environmental Protection Authority in August 2011.

An earlier determination in April 2011 by the Commonwealth Department of Sustainability, Environment, Water, Population and Communities was that the expansion project was not a controlled action and would not require further approval under the Environment Protection and Biodiversity Conservation Act 1999. The Jack Hills Expansion Project is owned by Crosslands Resources.

Murchison revealed in late November that it had agreed to sell its stake in Crosslands Resources and the Oakajee Port and Rail project to Mitsubishi Development for AUD 325 million.

Mitsubishi will acquire Murchison's interests in the Oakajee project as well as the Jack Hills iron ore mine. The deal requires approval from Murchison shareholders in February.