An Andrew Forrest-backed nickel miner has become ensnared in a $1 billion fraudulent trading scheme that is being investigated by Singapore authorities.

Poseidon Nickel, a $200 million nickel explorer and developer based in Western Australia, confirmed on Wednesday it was in discussions with Singaporean police over an alleged trading scam involving two companies from the tiny South East Asian nation, Envy Global Trading and Envy Asset Management.