Bloomberg reported that Fortescue Metals Group Limited is in talks to sell to Japanese and Korean mills for the first time as it seeks to take market share from Rio Tinto Group and BHP Billiton Limited.

Mr Graeme Rowley ED of Fortescue said that “We’ve been in active discussions with them. As contracts come up for renewal I would expect that they will come and talk very positively with us about us joining in their supply chain.”

Mr Rowley said that Fortescue which started its AUD 2.8 billion project last May has sold all the ore produced to steel mills in China. The mills it’s talking to have contracts to buy ore from Rio and BHP, Australia’s 2 largest exporters.

The Perth based company has more than doubled in market value 2008 to AUD 13 billion. It plans to boost capacity by the end of 2010 with AUD 360 million expansion of its Christmas Creek mine.

Mr Forrest said last week that the company will largely finance expansion plans by itself to bring production up to 95 million tonnes per year after failing to agree on terms for USD 6 billion in funding from China.

(Sourced from Bloomberg)