Australian iron ore miner Fortescue Metals Group's (Fortescue) CEO Andrew Forrest has met leading Chinese bankers in Hainan to seek more funding for the miner's expansion project for its Pilbara iron ore operations in Western Australia, as iron ore demand from China accelerates and low-grade producers fall away.
Mr. Forrest seeks a minimum of AU$2 billion (US$1.42 billion) to expand Fortescue's future production capacity to 120 million mt following its deal with China's Hunan Valin Iron & Steel Group Co to sell a 16.5 percent stake in the miner for AU$1.2 billion (US$847 million).
Accordingly, the group's current plan is to produce 55 million mt. Together with the Hunan Valin deal and its own cash flows, the company hopes to finance a capacity increase to 80 million mt. Any move beyond 80 million mt will require extra funding.