IRON ore miner Fortescue Metals has requested a trading halt on its shares pending an announcement on “the completion of a commercial negotiation”. Fortescue earlier this week declined to comment on reports it is in advanced discussions with sovereign wealth fund China Investment Corp (CIC) to sell convertible bonds worth about $US1 billion ($1.19 billion).

A Fortescue spokesman said yesterday the miner was “always in talks”
but did not confirm whether the news reports about CIC were correct.

Fortescue later issued a statement saying it was holding discussions
with a range of parties regarding matters including finance
opportunities to fund its iron ore expansion plans.

The company wants to increase its throughput or a “run rate” – the
rate at which ore is processed through its plant in Western Australia’s
Pilbara region – from about 36 million tonnes per annum (Mtpa)
currently.

It says it plans to progressively ramp up to 45 Mtpa, then 55 Mtpa, hitting 95 Mtpa “within a medium-term horizon of 2012”.

Shares in Fortescue were up 10 cents, or 2.3 per cent, at $4.45 at 2.55pm (AEST).

Source: AAP

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