BHP Billiton has given the go ahead for the development of its Yarnima Power Station in the Pilbara.
The development will provide power for its iron ore operations in the region.
According to BHP, it will build, own, and operate the combined cycle gas turbine power station, which will be located in Newman.
It will provide 190 MW and is designed to replace the energy supply from the existing Newman Power Station.
The Yarnima station will include gas turbines which are equipped with heat recovery steam generators to capture waste heat from their operation, for additional power.
By doing this it will minimise gas usage while also reducing carbon emissions.
"Yarnima Power Station will power our existing operations and provide a platform for further mine development. By employing state of the art technology, this power station will also increase our carbon efficiency and promote long term energy sustainability," BHP iron ore president Ian Ashby stated.
The plant has also been configured to be dual fuel, allowing it to run off diesel back up in the case of gas interruptions.
The project is predicted to cost around US$ 597 million.
Yarnima will begin supplying power in the first half of 2014.
BHP has also recently given approval for the development of Orebody 24, an iron ore project, in the Pilbara.
The new mine will have an output of 17 million tonnes per annum, with the development including the construction of an ore crushing plant, loadout facility, rail spur, and other support facilities.
Mining is scheduled to begin in the second half of next year.