Councillors decided unanimously to allow the mine to be built in the Burns Peak Forest Reserve, nine kilometres north-east of Tullah.
The mine will be operated by Mancala Resources Pty Ltd.
The new mining investment is expected to create jobs in the region.
The development will be a small open-cut and underground mine used to mine lead zinc ore for up to three years, with 60,000 tonnes of the mineral permitted to be mined from the site per year.
Cr Kevin Hyland said the development was a great opportunity for the region, citing the only downside being that the mine was restricted to three years.
Cr Hyland said he hoped that as with other mines with similar restrictions on the West Coast, the mining lease would be extended past three years.
His words were echoed by Cr Gary Bramich, who said the council owed it to the North-West Coast to support the mine.
Cr Bramich said the three-year mining lease was a great investment in the region.
Council also unanimously agreed to pass the recommendation to extend the Waratah-Wynyard Council Strategic Plan 2009-2014 for an additional 18 months.
The strategic plan will now be extended to December 2015.