The Tumby Bay District Council has given in-principle support to the Cape Hardy multi-commodity port proposal.
Council chief executive officer Trevor Smith said at this week's council meeting he did not believe officially backing the port was in conflict with the council negotiating conditions from the approvals processes such as infrastructure and social management issues.
"This support is not representing that requirement, we still have to make decisions in the best interest of our residents," he said.
"I denote this as not an alternate of Port Spencer but as an alternate to another port outside of the Eyre Peninsula or South Australia completely."
He said it would not be in conflict with the single use port at Port Spencer and councillor Ricky Trenberth agreed the Port Spencer project could be considered in future.
Mr Trenberth moved the recommendation to support the proposal and said it was a "necessary signal that we are open for business".
The council previously supported Port Spencer before Centrex Metals downgraded its interest in the port in 2015.