Fortescue Metals has missed the deadline for securing US$6 billion in Chinese funding.
The funding was a condition of the deal struck in August, in which Fortescue agreed to sell all its second-half iron ore production to Baosteel and the China Iron & Steel Association (CISA) at a 35% discount to last year’s prices, as long as it could raise the US$6 billion to fund its expansion plans.
Fortescue said in its announcement today that negotiations would continue, but industry analysts are concerned the chances of the deal collapsing increase the longer the discussions drag out.
Fortescue Metals Group
ASX Code: FMG
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For more details on this news story:
- The Australian: “Fortescue fails to meet China funding deadline”