Bloomberg reported that Australasian Resources Ltd, an iron ore developer controlled by billionaire Mr Clive Palmer, is in talks to raise about USD 1.1 billion to build a mine in Western Australia. The shares rose the most in more than four years.

The Brisbane based company said in a statement to the Australian stock exchange Australasian, through its International Minerals Pty unit may sell USD 500 million of high yield notes through Royal Bank of Scotland Group Plc. It is also in talks with a major trading house for a USD 600 million investments in the mine.

Mr Palmer who holds 64% of Australasian is seeking to develop a number of iron ore and coal projects in Australia including the Balmoral iron ore development covered by the agreement between Mr Palmer Mineralogy Pty and Australasian.

The mining magnate earlier this year withdrew a plan to list his iron ore and coal company Resourcehouse Ltd in Hong Kong to help raise funds for projects expected to cost in excess of USD 10 billion to build. The Resourcehouse listing plan included the Balmoral project.

Australasian agreed to an initial accord with Palmer Mineralogy Pty to access 2 billion tons of iron ore for the mine. China Metallurgical Group Corp has agreed to raise 75% of the project costs through an export credit from Chinese banks. A study of the development costs is under way.

(Sourced from Bloomberg)