PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals saw a slight increase in its share price on Tuesday as media reports emerged that the miner was considering a A$2-billion deal over its Chichester hub, in the Pilbara region.
It was reported that two State-owned Chinese entities were in separate talks with the iron-ore major.
In response to the media speculation, the company said on Tuesday that, while there was no imperative, the company was open to commercial discussions with a range of groups on a regular basis, at the asset level.
However, the miner added that its position remained unchanged and that there was no deal on the table at this time.
Like other iron-ore miners in Australia, Fortescue was battling severely depressed iron-ore prices and the company, in July, flagged $1.4-billion in cost cuts for 2016. This target was in addition to the $1.6-billion delivered cost savings targeted for between 2003 and the end of 2015.
Fortescue shares were trading at a high of A$1.97 on Tuesday, up from an opening price of A$1.90.