Speaking recently China Iron and Steel Association (CISA) secretary general Shan Shanghua stated, "There are some misunderstandings about the 2009 iron ore deal inked between Baosteel Group and Australian miner Fortescue Metals Group (FMG), which is not based on the premise of $6 billion in bank loans provided by China."
Mr. Shan emphasized that the finance worth $6 billion is not an essential part of the agreement signed by China and FMG. He quoted the relevant part of the agreement as follows, "The Chinese side will provide active help in the form of provision of finance by China to FMG for its production capacity expansion."