Hang tight people, however it is can't keep forcing it down...

Hang tight people, however it is can't keep forcing it down forever.

http://www.lloydslistdcn.com.au/archive/2009/october/01/banks-fail-to-meet-fortescue-funding-deadline

Chinese banks fail to meet Fortescue funding target
by Sam Collyer — last modified Oct 01, 2009 12:39 PM
Fortescue Metals Group has so far failed to raise the US$6bn it had hoped Chinese banks would contribute to its planned infrastructure expansion.


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In August, the Pilbara iron ore producer agreed to a 35% price cut for the second half of 2009, in a move which undercut its rivals.

In exchange, Fortescue had sought Chinese backing by September 30 to fund expansion.

Chinese steelmakers had committed to import 20m tonnes of ore from Fortescue in the six months to December 31, but the deal was conditional on Fortescue raising the money it needed.

Fortescue said yesterday that it remained confident of securing the funds, despite not having done so by the deadline.

"FMG is continuing with its plans to achieve 95m tonnes of production," a Fortescue spokesman said.

"It is just in regard to this agreement that the time was not met.

"To achieve a 95m tonnes run rate, the company needs to raise additional finance for infrastructure."

The spokesman admitted the financing timeframe was "tight", but would not be drawn on market feeling that the six weeks it allowed was unrealistic.

“There was nothing critical about the September 30 deadline, as FMG is fully financed to achieve its initial production target, which was 55m tonnes,” he added.

“This is not necessary funding for the company [currently] – it is funding for future growth.”

The failure of the deal means that none of the large Australian iron ore miners, including BHP Billiton and Rio Tinto, have reached contracted price agreements with Chinese mills.

Additional reporting by Lloyd's List