Australian mineral explorer Aurox Resources Ltd is planning to sell a 50 percent stake in its A$1.3 billion ($1.2 billion) Balla Balla magnetite iron ore mine to a Chinese partner to help fund the project.

Hebei Iron & Steel Group, China's second-largest steel mill, and Tianjin-based privately owned RockCheck Steel Group, which had signed sales accords with the Perth-based company, are on the prospective list of financiers, Bloomberg reported, citing Aurox Managing Director Charles Schaus.

Both Hebei Steel and RockCheck could not be reached for their comments.