The Kootenay-West gypsum mine will go forward after being granted an environmental assessment certificate.
Environment Minister George Heyman along with Energy Minister Michelle Mungall approved the certificate for CertainTeed Gypsum Canada Inc.
The proposed mine is 12 km northeast of Canal Flats and is expected to produce 400,000 tonnes of gypsum per year.
It replaces the Windemere Operations near Invemere.
Twenty-one conditions were identified by the environmental assessment office to allow the project to go forward.
They include developing a groundwater monitoring plan, and developing a wildlife management plan to mitigate adverse effects to surrounding species.
Additionally CertainTeed is required to establish ongoing engagement with the Ktunaxa Nation and Shuswap Indian Band throughout the life of the mine to ensure environmental conditions and regulations are met.