Government sources say foreign investors are tempted to swoop on the iron ore market, but Fortescue won't comment.
Photo: Manfred Gottschalk
Andrew Forrest's Fortescue Metals Group has refused to comment on whether it is a primary target of foreign buyers said to be circling Australian iron ore miners.
Veteran political commentator Laurie Oakes, writing in News Corp tabloids at the weekend, said that
"several" applications had recently been lodged with the Foreign Investment Review Board that would affect mining companies. The applications "raise the possibility of significant upheaval in the iron ore industry and ownership of sections of it over the next 12 months", Mr Oakes wrote.
In an interview with The Australian Financial Review on Friday, Mr Forrest said the company was open to asset sales, and that separately, having a foreign strategic investor could make sense for Fortescue. "We've got a 15 per cent shareholder in there," he said referring to Hunan Valin Iron & Steel. "We are looking at other opportunities, but personally I'm very comfortable with Fortescue's very positive cash flow."
However, following the latest rumour, a spokesman for the miner on Sunday said: "Fortescue does not comment on speculation."
The denial comes, however, as it is understood there has been some increase in applications to the Foreign Investment Review Board recently in relation to iron ore assets.
A government source said the level of activity could not be described as a flurry, although it was "interesting". It is believed the applications being submitted relate to on-market activity, not to a wholesale takeover in the iron ore sector.
Managing director of BC Iron Morgan Ball said there were no applications in front of the Foreign Investment Review Board regarding the Pilbara miner "that I'm aware of". However, he said foreign investors could provide a welcome boost to the miner's Buckland project, which is in development.
Mr Ball said the company had begun marketing the project to potential investors. "We would be comfortable in talking to foreign investors about investing in that," he said.
http://www.smh.com.au/business/mini...ut-fortescue-not-talking-20150524-gh8ip6.html
