Located around 110km west-north-west of Newman, the mine is estimated to operate for more than 30 years and produce around 70 million tons of iron ore each year.
The proposal includes development of mine pits, ore processing areas, waste dumps and a storage facility as well as railway and infrastructure corridors.
The EPA concluded that the project complies with its objectives across several environmental factors and is recommended for approval under certain conditions.
Western Australia EPA chairman Paul Vogel said: "These conditions include a management plan and creation of buffers and an exclusion zone to ensure the proposal does not affect a colony of Pilbara Leaf-nosed Bats.
"The management plan and exclusion zones will also protect the Koodaideri Spring and the associated creek and pools that provide a near permanent source of water, which in turn will safeguard vegetation as well as habitat for the Pilbara Leaf-nosed Bat, Northern Quoll and the Pilbara Olive Python."
To go ahead with the project, the company is also required to ensure that the mine will not increase the spread of asbestos in the environment.
