MELBOURNE, Jan 6 (Reuters) - Australia's Lincoln Minerals Ltd...

MELBOURNE, Jan 6 (Reuters) - Australia's Lincoln Minerals Ltd (LML) said on Wednesday it could win a state mining lease for a graphite project in South Australia by March, after the federal government said it did not need to approve the project.

Lincoln says its Kookaburra Gully deposit is among the world's top 10 graphite deposits in terms the percentage of graphite in every tonne of rock.

It aims to start producing by 2017, looking to feed growing demand for the material in batteries used in green technologies such as electric cars and solar power storage.

The project, estimated at A$40 million ($29 million), has faced some opposition on the Eyre Peninsula region from landowners worried about dust and noise from the mine and worried it will sap water needed for farms.

Lincoln Minerals said its Australian Graphite Pty Ltd (AGL) unit had responded to issues raised in public submissions in its final filing to the South Australian government this week.

"Subject to the Government assessment process, it is anticipated that a mining lease could be offered to AGL during the current quarter," it said in a statement. ($1 = 1.3959 Australian dollars)

Keyword LINCOLN MINERALS GRAPHITE/