An international consortium that includes India's biggest iron-ore producer, National Mineral Development Corporation (NMDC), has made a $230-million bid for a 70 per cent stake in a mine owned by Australia's junior miner Atlas Iron Limited.

NMDC has teamed up with Saudi-based ABS Consulting and ASX listed Boulder Steel Ltd for a 15-per cent stake in the mine, with ABS Consulting hold a majority with 55 per cent, while Boulder Steel will take up the remaining 5 per cent, The Economic Times reported.

The paper, citing a source said that NMDC will only buy 10 per cent stake at $70 million but would get an addition of 5 per cent stake free for providing its technical expertise.

According to unconfirmed reports the consortium is looking for a stake in Atlas' $3-billion Ridley project, which has estimated reserves of about 2 billion tones of iron ore.

Perth-based Atlas Iron is engaged in the operation of the Pardoo iron ore mine and the development of the Wodgina and Abydos mines in the Pilbara in Western Australia.

Atlas's projects include Pardoo Project, Ridley Magnetite Project, Abydos Project, Wodgina Project, Mt Webber Project and Midwest Project.

The Ridley Magnetite Project is strategically located within the Pardoo project area and is 100-per cent owned by Atlas.

The Ridley resource consists of banded iron formation (BIF) which forms part of the Ridley Range, with an average in-situ resource grade of 36.5 per cent Fe.

According to CSA Global Consultant's estimates, the Ridley resource is capable of producing 330 million tonnes of magnetite concentrate of 68.3 per cent Fe - enough to sustain a world-class mining operation for over 30 years.

Atlas Iron had said last year that it was looking for partners and willing to sell up to 70 per cent stake to develop its Ridley magnetite deposit and was reported to be talking to Chinese companies to take on as partners since all the iron ore produced at the company's mines are sold to China.

Trading in Atlas Iron's shares was halted this morning at the Australian Stock Exchange on a potential material transaction announcement by the company said the Australian Securities Exchange.

Although the NMDC consortium has made a tentative bid, it is highly likely that Chinese companies will make competitive rival bids.