The province has approved more than $4 million in loans to a controversial mink farm development in western P.E.I.

Silver Hill Fur Farm is building on 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 animals.

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