The new facility will house up to 10,000 mink. (CBC)

A controversial mink farm development in western P.E.I., Silver Hill Fur Farm, has been approved for more than $4 million in loans by the province of P.E.I.

The fur farm is building a new site in Haliburton, near O'Leary.

After the project was given environmental approval late last year, some neighbours voiced concerns about potential groundwater contamination and odours.

The new facility, which government documents describe as state-of-the-art, is expected to house up to 10,000 mink.

The provincial Environment Department conducted an environmental assessment before approval was given for the new farm.

Environmental officials said they will monitor the farm once it begins operation.