Fortescue Metals Group is continuing to look for sources of financing in China beyond its recently approved investment by Hunan Valin Iron and Steel, the firm’s executive director told China Economic Review. Speaking on the sidelines of a business forum in Beijing, Russell Scrimshaw said the Australian mining firm was in early talks with a number of Chinese and international institutions to help Fortescue eventually expand its yearly output to beyond 110 million tons.
Fortescue Metals has been reported to be in talks with China’s sovereign wealth fund China Investment Corp to develop an iron ore mine in Australia’s Pilbara region.
Hunan Valin has received approval from Australian regulators to purchase a 17.3% stake in Fortescue in exchange for up to US$922 million and a seat on Fortescue’s board.
Responding to a question about Chinese controls of foreign investment in Chinese natural resources, Scrimshaw said he expected to see more Australian investments in China.
“There’s already been some successful Australian investments in China… so I think there will be many more in the future,” he said.