Fortescue shares soar on new reports of selling off mine infrastructure

Chairman Andrew Forrest. Paul Kane/Getty Images

Shares in Fortescue Metals surged on a new report that the iron ore miner had been approached to sell its infrastructure.

The Wall Street Journal quoted Fortescue CEO Nev Power as saying the miner had been approached by two parties.

However, Fortescue would prefer to wait for iron ore prices to recover. “We are in very strong shape and therefore we can be patient,” Power said.

Its shares jumped early in August after reports that Chinese interests want to buy into the miner’s assets.

Two state-owned entities — China’s Hebei Iron & Steel Group and Tewoo Group — are said to be in separate talks about acquiring a stake.

Fortescue, which has been cutting costs and increasing production in response to the fall in iron ore prices, looked at selling part of its infrastructure assets in 2013.

A short time ago, the company’s shares were up almost 6% to $2.075.

In April, the company successfully raised $US2.3 billion to pay down debt, effectively giving it at least another three years breathing space during a period of market volatility.

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