Roy Hill Holdings Pty, controlled by Asia’s richest woman Gina Rinehart, said talks are advanced to obtain A$7 billion ($6.5 billion) in funding for its Australian iron ore project, even as the price of the material this week fell the most in four years.
Chinese steel companies, the world’s largest, helped drive a regional industry benchmark index to a seven-month low as concern builds that some mills face financial difficulty amid a government credit squeeze.
Vale SA, the largest iron-ore producer, fell to an eight-month low as prices for the steel ingredient slumped the most since 2009, pushing down mining stocks from Cliffs Natural Resources Inc. to Anglo American Plc.
Freight traders are hiring record numbers of iron-ore carriers in the spot market as Chinese steel production expands at the fastest pace in three years, spurring the biggest rally in shipping rates since 2009.
China Steel Corp. , Taiwan’s biggest maker of the metal, is in talks with five groups to buy stakes in iron ore and coal mines to reduce its reliance on raw material suppliers as it increases production.