Australia's federal government approved Toro Energy's (ASX: TOE) proposed uranium mine at Wiluna, Western Australia. However, the go signal was subject to Toro meeting 36 conditions.

The prerequisites include putting in place measures to protect the local groundwater from radiation and ensuring the place is left safe for humans and animals when the mine is closed after 14 years of operation.

Prior to issuance of a permit by Energy Minister Tony Burke, the WA state government gave its approval for the project. New Resources Minister Gary Gray also backed the planned uranium mine slated to begin operations in 2014.

"What we're looking at is a project that will bring substantial local social benefits and also local social investments training and jobs; indigenous jobs and jobs at Wiluna," ABC quoted Mr Gray.

Not unexpectedly, green groups such as the Conservation Council, opposed the project. Mia Pepper of the council pointed out that Toro Energy is a small firm with no proven experience in uranium mining and may not have the capacity to manage a venture the size it is proposing.

Toro estimates the project will cost $269 million to build and has so far secured $12 million funding to go on with the venture, while it boosted its working capital through Macquarie Bank's debt facility to almost $20 million from $7.5 million.

News of the federal approval boosted Toro's shares by 21.74 per cent or 14 cents to 2.5 cents.

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