Legacy Iron Ore's (ASX: LCY) 50% shareholder National Mineral Development Corporation Ltd (NMDC) has indicated its commitment to fast track a JORC reserve upgrade and feasibility studies at the Mt Bevan iron ore project in Western Australia.
India's NMDC has pledged support and funding to bring Mt Bevan into production.
NMDC, which is the country’s largest iron ore producer, has a $4 billion war chest for acquisitions in bulk commodities.
NMDC is also pursuing acquisition of other mineral assets in Australia to secure future supplies of coking and thermal coal and rock phosphate for India's steel and fertiliser production.
Mt Bevan will be the initial target project of NMDC to expand its resource base.
An memorandum of understanding between NMDC and Minemakers (ASX: MAK) was executed in June 2011 and negotiations concerning a Joint Venture Agreement are in process.
In 2011, NMDC indicated it was likely to use Legacy Iron Ore as its investment vehicle to make acquisitions.