Fed govt nod for Australasian project

Australasian Resources has gained federal environmental approval for its $2.7 billion Balmoral South iron ore project as discussions continue with a number of potential financiers.

The approval from the federal environment minister follows state approval that was gained in October.

"In summary, the impact assessment process is complete with the project deemed to be environmentally acceptable," Australasian said in a statement.

"Australasian anticipates the imminent release of the State Environment Minister's conditions for implementation of the project."

The company is currently in discussions with a number of parties in the Middle East, North Africa and Asia over a possible key role in the development of Balmoral South.

It follows the collapse of exclusive finance talks with Shougang Corporation in July after the Chinese company failed to deliver a finance offer by June 30 in return for rights to the operation.

Shares in Australasian shed half a cent to 47c at 13:21 AEDT.