On Tuesday, it was agreed to approve the application from Hargreaves Surface Mining Ltd, subject to a number of strict legal and planning conditions.
The mine, which is located around 2km south of Rosewell, is expected to produce 10m tonnes of coal over a 10-year period, while the subsequent restoration of the land is expected to take up to two-and-a-half years.
The coal which is produced, will be sold to power stations for the generation of electricity.
In its submission, the firm suggested the new mine will employ 230 people directly, with an additional 114 expected to be employed by other businesses providing services to the mine operator.
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Over the life of the mine, the economic benefit of the development has been estimated at £475m.
Councillor Owen Thompson, Chair of Midlothian's Planning Committee said: "Having taken into account the extensive work done by officers, including a full consultation process and a pre-determination hearing, on analysing this proposal, we have fully considered this proposal and approved it.
"We are putting in strict conditions and have guarantees in place on the restoration of this land once mining has been completed.
"This will be a phased development, with each area mined and restored before the company moved onto the next area as the project progresses and that gives us some peace of mind over the future restoration of the site."
A report by planning officers at the local authority recommended the project, saying extraction was "necessary and in the national interest". However, local residents, who have formed an action group called Stop Cauldhall Opencast, said the decision was a "travesty of the planning process".
(JP/MH)
