CIC, Fortescue discussing bond investment

Sovereign-wealth fund China Investment Corp (CIC) and Fortescue Metals may seal the deal on a more than US$1 billion convertible bond investment that would allow Australia’s third-largest iron ore miner to triple its production in the future, state media reported. It would be the latest example of CIC’s recent movement to invest in natural resources, following its investment in Canada’s Teck Resources in June. The deal is also China’s most recent attempt to invest in an Australian iron ore miner after Chinalco’s agreement with Rio Tinto fell through earlier this year. Fortescue did not respond specifically to reports about the bond issue, saying only that "discussions on finance are confidential and incomplete." Analysts say the company will require significant investment if it is to expand.