By Jesse Riseborough
Aug. 12 (Bloomberg) -- Fortescue Metals Group Ltd., Australia’s third-largest iron ore exporter, is reviewing financing options for planned expansions of its mine, port and rail operations in Western Australia.
The company “holds discussions with a range of parties in regards to matters including finance opportunities,” Perth- based Fortescue said today in a statement, responding to unspecified media reports about potential transactions. “Discussions on finance are confidential and incomplete.”
Fortescue is in talks with China Investment Corp. to sell convertible bonds worth about $1 billion, Reuters reported yesterday, citing two unidentified people familiar with the deal.
CIC, as China’s $200 billion sovereign wealth fund is known, is in talks with Fortescue to invest about $3 billion in the company, three people familiar with the deal said in February. Talks with CIC were continuing, director Chris Catlow said in March. Fortescue may need between $3 billion and $4 billion to proceed with expansion, China’s Hunan Valin Iron & Steel Group, the company’s second-largest shareholder, said in May.
Fortescue, which started shipments in May last year, advanced 4 percent to A$4.38 at 12:50 p.m. Sydney time on the Australian stock exchange.
To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net
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