"This decision is about achieving balance and moving toward resolution and increased certainty for all concerned," said Stan Hagen, the provincial resources minister.

Redfern is a unit of Redcorp Ventures (RDV.TO). The news boosted Redcorp stock 11 Canadian cents, or nearly 46 percent, to 35 Canadian cents on Friday.

The mine's approval is still subject to several conditions, but a Redcorp official said they "were not onerous."

Critics say the project is a threat to the Taku River, the source of a commercial salmon fishery worth $2.7 million a year to Alaskans. It is also an important habitat for salmon caught by sport fishermen and for three types of trout.

Provincial officials approved the mine's development once before, but the permit was quashed when a court ruled they had failed to adequately consult with the Taku River Tlingit First Nation, which says the site is on its historic territory.

Redfern's plan calls for a 2,500-tonne per day underground mine producing copper, lead, zinc, gold and silver. The mine site on the glacier-fed Taku River was originally staked in 1923. It operated for seven years before closing in 1957 because of low ore prices.

The project calls for construction of a 120 km (75-mile) road through the wilderness to Atlin, in northwestern British Columbia, near the Alaska and Yukon borders. That would give the project land access to Skagway, Alaska, where the ore would be loaded on ships.

Critics said the road poses a danger to wildlife by allowing people an easier route into the wilderness. The province said on Friday it will require Redfern limit public access to the road and prohibit hunting in the right of way.

Alaska Gov. Tony Knowles tried in 1998 to get the U.S.-Canada commission that oversees transborder issues to review the mining proposal, but the request was blocked by Canadian officials.

Knowles, a Democrat, left office this month and was replaced by Republican Frank Murkowski, a 22-year veteran of the U.S. Senate who campaigned on a platform of promoting mining, logging and oil drilling.

Murkowski's spokesman, John Manly, said while the new governor supports more mining, Alaska intends to keep a close eye on the project. "We intend to make sure it is done right," Manly said.

Redfern, which has spent years promoting the project, says it will actually help the environment because it will stop the leakage of acid into the river from the former mine.

"We're looking forward to getting going," said Redcorp Ventures president Terence Chandler, who believes Alaska's concerns have been addressed in the latest development plan.