Cavenham Quarry in Suffolk will be extended by 4.1 hectares for the extraction of 152,000 tonnes of sand and gravel over 12 months.
The site in Bury St Edmunds is operated by Allen Newport Ltd and currently covers some 62 hectares and has been operating since the 1960s.
Suffolk County Council granted permission for the work which is expected to start in some two years and the land restored after quarrying has finished. Villagers nearby have raised concerns over lorries passing along rural roads.
An application for an asphalt plant run by Breedon Group Services on the site was also given permission to continue for a further four years. The plant was built following construction of the M1 during the 1960s.
Cavenham Quarry was founded in 1934 by Allen and Margery Newport and has three generations involved in the site. The managing director is their grandson Richard Stevens.
During 2013, the majority of the family shareholders sold their interest in the business to Mr Stevens and two outside investors.