Palmer’s Australasian May Raise $1.1 Billion for Ore Mine

Sept. 27 (Bloomberg) -- Australasian Resources Ltd., an iron ore developer controlled by billionaire Clive Palmer, is in talks to raise about $1.1 billion to build a mine in Western Australia. The shares rose the most in more than four years.

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

Palmer, who holds 64 percent 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 Palmer’s 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 $10 billion to build. The Resourcehouse listing plan included the Balmoral project.

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

Australasian rose 61 percent to 26.5 cents at the 4:10 p.m. close of Sydney trading, the most since April 16, 2007.

To contact the reporter on this story: Elisabeth Behrmann in Sydney at

To contact the editor responsible for this story: Rebecca Keenan at