The decision comes only a few days after a prominent wildlife biologist said the presence of extractive companies in the Tarkine will have minimal impacts on the endangered animal.
Davis’ X2 Resources has already built a war chest of almost $4 billion and is believed to be asking JPMorgan for US$8bn loan to back up a formal offer to BHP.
The mine has an initial annual production capacity of 35 million tonnes and is a key part of BHP's plans to lift capacity from its Pilbara operations to 220 million tonnes a year.