The province has given conditional environmental approval for a new potash mine near Regina.

CanPacific Potash is proposing to develop a 3.25 million tonne-per-year solution mine about 50 kilometres southeast of Regina, near Sedley.

A solution mines uses water or steam to extract the potash from the ground.

The approval of the Albany Potash Project comes with a set of conditions that include a compensation plan for any native grassland and wetland habitat hurt by the mine.

The plan must identify how the company will restore the existing areas or create new native prairie or wetlands.

CanPacific must also reach a development agreement with the RM of Francis.

Environment Minister Dustin Duncan said this is the first of a number of approvals the company will need in order to proceed with the project.

A number of groups voiced their opposition during the assessment, and Jim Harding, president of the Qu'Appelle Valley Environmental Association, said in an email there are a number of concerns that haven't been addressed.

Harding said the local grasslands and wetlands are complex ecosystems that can't be managed like lawns.

He said the province also didn't consider the impact of permanently removing water out of the Qu'Appelle Watershed, nor the climate change implications.

Duncan said SaskWater has looked at this project and, "There is the ability to provide water in a sustainable fashion going forward, with not only this project but if there are additional industrial projects."

The mine is projected to have a 70-year lifespan.