A mining supervisor has faced court accused of murdering a colleague at a Pilbara mine site before allegedly being caught with the body wrapped inside a canvas ute cover.

Troy Hausler, 30, was charged on Tuesday after the body of Toby Richter, 40, was found at Pilbara Mineral's Pilgangoora lithium mine site around 6.30am on Monday.

Accused murderer, Troy Hausler.

Homicide detectives won't yet reveal exactly how Mr Richter was killed but Nine News Perth's Jerrie Demasi reported police will allege Mr Richter was killed inside an underground tunnel, and that Mr Hausler rolled his body up inside a canvas ute cover.

Ms Demasi said police will further allege Mr Hausler was planning to move the concealed body to his vehicle but he was confronted by workers in the tunnel who spotted the victim's feet.