Australian mining group Rio Tinto receives an environmental approval to develop its Kennecott Eagle nickel and copper mine project.

The mining giant told media it would expend $US469 million ($A54145 million) in construction in Michigan's Upper Peninsula. The first production is expected to generate in late 2013.

Nickel concentration from the mine will extract an average 17,3000 tonnes per year while copper concentrates will contain an average of 13,200 tonnes annually for the next six years.

Copper chief Andrew Harding said the long-term project for both nickel and copper in Eagle remains positive as it will provide more benefits and growth in the firm.

The new mine will be the main nickel mine in the USA. It will also become the first new mine project to develop in Michigan for decades.

“This reflects an environmentally responsible and community focused operation,” said Mr. Harding.

“The Upper Peninsula of Michigan is a highly prospective region for nickel and copper exploration and Rio Tinto is actively exploring for additional resources in the immediate area,” he said.

Last May, two protesters were reportedly arrested at the mine site, which native American tribes regard the area as a “sacred ground.”

Shares of Rio Tinto today went into trading at 80 cents to $70.22.