Mining tycoon Clive Palmer is expected to seek funding from Chinese companies including Shougang Corporation and Baosteel, with which he already has strong links, to back his proposed float of Resources Development International Ltd (RDI), reported the Australian Financial Review newspaper.
It is thought that the billionaire has received significant interest from Chinese investors hungry for resources.
A source told the paper the turmoil in global stockmarkets would not affect Mr Palmer's listing ambitions because, "you have to look at it through the iron ore market's eyes not the eye's of the stockmarket."
"There is a rush on to be the next Fortescue, BHP, or Rio," the source said.
The paper reported Mr Palmer would approach Shougang and Baosteel, seeking financial interest.
Shougang has a significant investment in Australasian Resources, which has the rights to mine magnetite iron ore from Mr Palmer's Balmoral South project, the paper reported.
CITIC Pacific has the rights to mine magnetite iron ore next to Balmoral South after reaching a $400 million deal with Mr Palmer's private company Mineralogy.
ARH Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
