Fortescue Metals Group founder Andrew Forrest is pursuing talks with China’s sovereign wealth fund about investing billions of dollars to expand its Pilbara iron ore mine, Bloomberg reported, citing Australia’s The Age newspaper. Forrest dined with China Investment Corp (CIC) Chairman Lou Jiwei at the Boao economic forum on Friday night, and was also seen in talks with CIC official Bai Xiaoqing on Saturday. CIC wants to invest about US$3 billion to finance the mine expansion in a way that is financially structured to avoid triggering problems with Australia’s Foreign Investment Review Board. The proposed multi-billion dollar investment would allow CIC to share the profit upside without exercising control or management participation.
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