Murchison Metals, an Australia-listed company and a fifty-fifty partner in the multi-billion dollar Oakajee port and rail project, announced on Monday that it was pursuing talks with a number of parties, including Chinese investors, interested in participating in its development.

Murchison, the company behind one of largest resource infrastructure projects in Australia, said the development faces considerable funding and supply chain hurdles, following the recent closure of mid-west iron ore operations by a key foundation customer.

Depressed with Construction delays, cost overruns and political strife, Chinese iron-ore trader Sinosteel recently placed its $2 billion Weld project on hold, putting serious doubts over the viability of project.

The fresh talks between Murchison and the interested parties could prove a lifeline for the Oakajee port and rail project, which is co-owned by Japan's Mitsubishi Corp.

The Oakajee development project proposes to build a railway to link mines in the region to a new port at Oakajee.

Oakajee port and rail project was originally due for completion by the year of 2012, but now the project is not expected to finish until 2015.