Miner gains currency
July 13, 2011
FORTESCUE Metals Group has described its maiden transaction in Chinese currency as historic, with chief executive Andrew Forrest saying he expects to see other Australian businesses follow suit.
''Fortescue has started transacting in renminbi,'' Mr Forrest told the Boao Forum for Asia in Perth. ''We are exploring the possibilities of being paid with renminbi and purchasing equipment in renminbi.''
The move could represent the first step towards setting iron ore contracts in the Chinese currency.
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''We're the trickle and it will start to flow because it makes it much easier to do business in China,'' he said.
WEST AUSTRALIAN
Fortescue Metals Group has started doing transactions in China in renminbi (RMB) in a step towards conducting further trade in the Asian superpower's currency.
Outgoing Fortescue chief executive Andrew Forrest told the Boao Forum in Perth on Tuesday that other Australian firms would do the same because it made it much easier to do business in China.
"I can confirm, and proudly, that Australia has, through Fortescue, started transacting in Renminbi," Mr Forrest told reporters.
"We're now exploring the possibility of being paid in RMB, purchasing equipment in RMB, from our Chinese bank account."
A Fortescue spokeswoman also confirmed the iron-ore miner was considering a dual stock exchange listing in Hong Kong. The company first confirmed speculation of a possible Hong Kong listing in March.
Fortescue starts ore sales in yuan
Reuters
Australia's third-biggest iron ore miner, Fortescue Metals Group, has started selling some of its ore in Chinese yuan, chief executive Andrew Forrest said.
"Fortescue has started transacting in renminbi. We are exploring the possibilities of being paid with renminbi and purchasing equipment in renminbi from our renminbi bank accounts," Mr Forrest told a meeting of business leaders in Perth.
Fortescue sells the lion's share of its iron ore to Chinese steel mills and until now only accepted payment in US dollars.
The company completed a business-to-business transaction in yuans on Friday but deal did not involve the sale of iron ore, chief operating officer Nev Power said.
Global miner Rio Tinto has been studying the possibility of switching iron ore price settlements to Chinese yuan, the company's iron ore division chief Sam Walsh said last month.
While Rio will be looking at the possibility of switching iron ore price settlements to yuan, Mr Walsh said the company had no initial plans to do it.
Iron ore sold to China, the world's biggest consumer of the steelmaking raw material, is denominated in US dollars.
Fortescue, listed on the Australian Stock Exchange, was also considering additional listing on the Hong Kong and Shanghai Stock Exchanges, according to Mr Forrest.
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