Environmentalists have accused a council of removing a condition on the development permit for a planned open cut mine in Tasmania's north-west.

The Tarkine National Coalition says the Circular Head Council has advised it has removed a condition from the permit of Shree Minerals Nelson Bay mine.

The condition prevented building and vegetation removal within 30 metres of a watercourse.

The coalition's Scott Jordan says it is outrageous.

"If I was a person in the Circular Head Council area today I'd be very concerned as to what this council is prepared to do to allow these mining companies to go ahead," he said.

"It seems like the mining company, without even opening its doors, is running the Circular Head Council."

The Circular Head Council says the condition had to be removed, because it contradicted conditions set by the Environment Protection Authority.

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