Western Australian iron ore producer Gindalbie Metals Ltd and Chinese steelmaker Anshan Iron & Steel Group Corp (Angang Group) are planning to invest A$1.8 billion to develop the Karara iron ore mine in Australia and expect to obtain loans amounting to $1.2 billion from China Development Bank by early next year.

The Australian miner said it has got a letter of commitment from China Development Bank (CDB) and is discussing the detailed term sheet, according to the company's Chief Executive Officer Garret Dixon.

The accord may be signed by the end of this year, though more likely early next year and the terms of the loan are "very competitive", Bloomberg quoted the company chief as saying.