The Environmental Protection Authority (EPA), environmental watchdog of Western Australia, has given its support to the construction of a $6 billion worth 350 million tonne per year capacity iron ore processing port facility near Karratha.

The multi-user port facility proposal at Anketell Point, located 30km northeast of Karratha, will be developed by API Management, a joint venture between Aquila Resources and Posco-backed AMCI.

The EPA recommended the development, subject to several conditions which include letting marine officers monitor and report on changes to seabed habitats during construction.

EPA said all these must be met to help minimise its potential impact on the environment, noting unavoidable impacts to marine habitats should be expected. The environmental watchdog however remained confident most of the affected areas would recover within five years.

EPA likewise required further studies into air quality control at the site, plus an expanded evaluation of the impact of additional dredging.

"We want to do this project but we want to do it right," Premier Colin Barnett was quoted as saying by ABC News. "That relates to environmental, heritage issues, whatever might come up so there's still some way to go on this."

The EPA report is open to a two week public appeal period before being considered by the Environment Minister.