Grange is seeking one or more joint venture partners to contribute to the development of the project through direct cash funding and provision of services.

Grange is now working with a number of interested parties to conduct due diligence, and work towards the development of firm joint venture proposals. The tender process is expected to conclude in the fourth quarter this year.

Grange managing director Geoff Wedlock says the company was pleased with the range and nature of the expressions of interest.

"The proposals have been innovative and creative, including some fresh perspectives on how the project could be developed."

Geoff Wedlock says Grange would examine the full range of project development options and was unconstrained in its approach to achieving the best possible outcomes for shareholders.

Simon Price, a director of Grange's corporate advisor Azure Capital said that although the process is at a preliminary stage the degree of interest is encouraging.

Under the Grange development proposal, the project is expected to produce 6.8 million tonnes per annum of iron ore pellets for supply to steelmakers using blast furnace or direct reduction production processes.

The mine will be located at Southdown, near Albany in Western Australia . Iron concentrate will be transported by slurry pipeline to Albany Port before being shipped to Kemaman in Malaysia where the pellet plant will be located.

Grange adopted the dual location strategy for the project to maximise efficiency, take advantage of exceptional infrastructure at Kemaman and gain best possible proximity to Asian and Middle East steel producers.