Federal environmental approval has been granted for the Urquhart bauxite project in Queensland.

Proponent Metallica Minerals says its Urquhart project - located 5km southwest of Weipa on the Cape York Peninsula - is now well on track for development.

It was approved according to the terms of the Environment Protection and Biodiversity Conservation Act 1999.

Metallica now needs Queensland Government approval for the lease from the state’s environmental authority, and is waiting on a separate approval for a planned haul road linking the project to a port at Hey Point.

Metallica CEO Simon Slesarewich said the federal approval would help the company clear the remaining hurdles.

“[It] clearly demonstrates that the environmental plan developed for the project is sustainable and meets best practice standards as determined by federal authorities,” he said.

“We look forward to receiving Queensland state government approvals and transitioning Urquhart into production.”