Wuhan Iron and Steel Group, the third-largest steel company on the mainland, has expressed interest in the proposed sale of iron ore assets by Australia's Aquila Resources, according to sources.
The company signed a confidentiality agreement late last month that gave it access to Aquila's financial data.
Aquila, the fourth-largest Australian mining company by market capitalisation at about US$3.34 billion, has about half its assets in iron ore and the other half in coal mines, some of which may also be sold.
Aquila said on Wednesday last week it had hired investment banks Citigroup and Macquarie to conduct a strategic review and had begun talks with several interested parties on issues including 'change of control transactions, sales of assets, stock-based mergers and spin-offs'.
The newer and exploratory assets could be housed in one unit, and the older, more established assets in another as part of the restructuring, the company said.
Shareholders will be notified next month of the company's plans and will then vote on the changes.
Aquila's shares have risen 25 per cent in the three business days since the announcement.
