Chinese steel producer Hunan Valin Iron and Steel plans to invest US$318 million in Australia iron ore producer Fortescue Metals Group through a share placement, Reuters reported, citing the Australian Financial Review. The paper said the deal was part of funding package worth as much as US$1.91 billion, which could revive Fortescue’s expansion plans. Hunan Valin is backed by China’s sovereign wealth fund, China Investment Corp (CIC), in the deal. Fortescue officials said the company had held talks with Anglo American and CIC about possible investment opportunities. Sources also told Reuters that Baosteel has also been in talks to buy some of Fortescue’s assets.
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