Wednesday, February 18, 2009

Fortescue In Talks With Investors

Australian iron ore producer Fortescue Metals Group said on Wednesday that it is in holding investment-related talks with Anglo American PLC and China's sovereign wealth fund , China Investment Corp., but noted the discussions were preliminary.

The miner said in a statement to Australian securities regulators that it had engaged advisors J.P. Morgan, Grant Samuel and Azure Capital to evaluate approaches from potential investors.

"Fortescue can confirm that there have been recent meetings and site visits with representatives of these companies to explore investment opportunities,'' said Fortescue Company Secretary Rod Campbell in the statement.
Fortescue is reportedly seeking to secure financing for a planned expansion of its operations in the Pilbara region of Western Australia as well as expanded port infrastructure.

The miner is currently undergoing upgrades to its facilities that will lift annual iron ore output to 55 million metric tons. It also reportedly has plans to boost annual output to 80 million tones, but recognizes it will need to approach foreign investors after falling iron ore prices dashed its hopes to fund the expansion itself.

Source: MarketWatch

No comments: