Fortescue 'mum' on $1bn funding from China

A spokesman for Fortescue Metals Group Ltd said the group would not comment on reports that its chief executive, Andrew Forrest, held discussions with bankers in Beijing earlier this week seeking loans to help fund a $1 billion expansion of its Pilbara iron ore project.

The spokesman confirmed Mr Forrest had been in China but said his visit was nothing out of the ordinary and that Mr Forrest was regularly in China visiting the company's customer base.

He said media reports that claimed Mr Forrest was engaged in financing discussions were pure speculation and the company would be making no further comment.

Fortescue, which has already raised $2.7 billion to fund rail, port and mine infrastructure in the Pilbara, is hoping to ramp up production from 45 million tonnes per annum to 200 mtpa and capitalise on increasing demand for iron ore from China.

Fortescue shares were 2.4 per cent lower at $61.95.