With this approval, the company is planning to commence production from the mine in the fourth quarter of 2013.

Ontario expects to process about one million tons of ore per annum, besides producing 20,000 tons of natural, large-flake, high-carbon graphite concentrate from the mine.

Ontario Graphite general manager Jerry Janik said that securing the approval marks a critical turning point for the company in resuming the production at its at the Kearney mine.

"This milestone reflects our company’s strong commitment to the responsible re-commissioning of the mine site, with a particular focus on environmental sustainability," added Janik.

Ontario Graphite has been working in collaboration with the state government and local aboriginal communities since last two years, the company stated.

Ontario Graphite CFO and chief administrative officer Ellerton Castor stated: "We’re building positive partnerships with the Town of Kearney, the local aboriginal communities, and others in the Kearney area."