It is reported that National Mineral Development Corporation, the Indian iron ore miner trying to build an Australian resources house has made its first move since the deal that established WA junior Legacy Iron Ore as its local arm.

Legacy has struck a friendly deal to take control of Hawthorn Resources and consolidate the USD 1.3 billion Mt Bevan magnetite project in the Yilgarn under one owner. Hawthorn will give Legacy a 60% slice of the company and a majority of directors in return for USD 5 million cash the 60% stake in Mt Bevan Legacy is earning and the support of NMDC.

NMDC's support is critical because it has agreed to fully fund Mt Bevan into production. That could see India biggest miner which is backed by the Indian Government and has USD 4 billion in cash take a hand in the expansion of Esperance port which is the subject of a review.

Australia Foreign Investment Review Board this month gave NMDC the go ahead for an USD 18.9 million deal to acquire 50 per cent of Legacy.

NMDC is also in talks to take a stake in Atlas Iron Ridley magnetite deposit in the Pilbara, Minemakers' Wonarah project in the Northern Territory and is looking at coal projects in Queensland.

Mr Sharon Heng Legacy managing director said having Mt Bevan under one roof would accelerate development and make it easier to finance.

(Sourced from thewest.com.au)