Fortescue Metals Group says it is in talks about financing its iron ore expansion plans but declined to confirm that it is in advanced discussions with China Investment Corp (CIC) to sell convertible bonds worth about $US1 billion ($1.2 billion).
A spokesman the iron ore miner said Fortescue was ''always in talks'' but did not confirm whether news reports about CIC were correct.
Shares in Fortescue were up 16 cents, or 3.8 per cent, at $4.37 in recent trading.
The company later issued a statement saying it held a range of discussions with a range of parties in regards to matters including finance opportunities.
''Such discussions on finance are confidential and incomplete,'' Fortescue said.
Fortescue was expected to announce a hybrid security raising with CIC in late February but instead had its coffers bolstered by an investment by Hunan Valin and Steel Group of $645 million.
That investment lifted Hunan Valin's stake in the miner to 17.55 per cent, from 9.79 per cent.
Fortescue said in March it was open to deals with Chinese entities, including CIC and China's Export-Import (EXIM) Bank, and that accessing Chinese debt was part of its growth strategy.
CIC describes itself on its website as a $US200 billion ($240 billion) sovereign wealth fund.
The miner is targetting a throughput or a ''run rate'' - the rate at which ore is processed through its plant in Western Australia's Pilbara region - of 45 million tonnes per annum (Mtpa), up from about 36 Mtpa currently.
It said today it aimed to ramp up to 95 Mtpa ''within a medium term horizon of 2012''.
''As part of its planning program to achieve this profile, Fortescue is reviewing its finance options.'' Executive director Graeme Rowley said in June the miner's throughput expansion beyond the 55 Mtpa rate was dependent on an improvement in the global economic climate.
Fortescue's spokesman said the company was targetting 45 Mtpa by the first half of calendar 2010, but Credit Suisse estimates this will be achieved in mid-calendar 2011.
The miner had $US655 million cash on hand and $US3.5 billion in total liabilities at the end of June.