Fortescue Metals Group has warned it could take at least a $US171 million ($A264 million) hit from suspended shipping contracts but says talks with Chinese entities for equity investment and a hybrid funding package are progressing.

Fortescue Metals Group has warned it could take at least a $US171 million ($A264 million) hit from suspended shipping contracts but says talks with Chinese entities for equity investment and a hybrid funding package are progressing.