Economy

Fortescue in talks to sell China magnetite mines

(Xinhua)
Updated: 2010-04-09 20:34

BOAO, Hainan - Fortescue Metals Group, Australia's third-largest iron ore producer, is in talks to sell magnetite iron mines to Chinese businesses, the company's CEO Andrew Forrest said here Friday.

Forrest made the remarks on the sidelines of Boao Forum for Asia's annual meeting that will officially open Saturday in Boao, a scenic town in south China's island province of Hainan.

FMG, which started operations in mid 2008, will expand its annual production capacity to 55 million tonnes in the coming year, Forrest said.

The mining company, in which China's Hunan Valin Iron and Steel Group owns a 17.4-percent stake, has sold 55 million tonnes of iron ore to China where it has more than 50 customers, he said.

The annual capacity will "soon" be increased to 95 million tonnes, 90 percent of which will be supplied to China, he said.

Ultimately the company will raise its capacity to 300 million tonnes per year, he said, without elaborating when the company plans to reach this goal.