Cementa, owned by giant HeidelbergCement, has been battling local groups over plans to extend quarrying on Gotland, where it produces about 75% of the cement used in Sweden.

The court said in a statement it had decided that a nearby nature reserve, protected under European law, would not be damaged by the quarry operations and that drinking-water supplies would remain secure.

Cementa said that the court had issued an enforcement order which would mean that "the permit can be put into operation immediately, even if the ruling is appealed".

Last year, a court rejected a long-term extension of quarrying at the site, only for that decision to be overruled by the government, giving the Slite operation a stay of execution.

Cementa had warned of cement rationing.

The company then applied for a new permit to quarry for another four years while it prepares an application to secure production at the Slite plant for the coming decades.

That application is expected to be registered in spring.

A government report last year warned that 150,000 jobs could be at risk if the construction sector grinds to a halt, while importing cement could lead to increased CO2 emissions.

Construction accounts for roughly 11% of GDP, according to Sweden's Construction Federation.

(Reporting by Nordic Newsroom, editing by Terje Solsvik)