Reuters cited Mr Huang Tianwen president of Sinosteel as saying that Sinosteel Group, China's largest ferrous metals trader does not rule out taking a stake in Australian iron ore miner Fortescue Metals Group Ltd.

Australian media have reported that Chinese state owned metals firms, including Sinosteel, Chinalco and Baosteel, want to buy a stake in Fortescue, as Beijing seeks to wield more control over raw material supplies from the Australian outback.

But, Mr Huang denied that the company was looking to take a stake in BHP, the world's largest miner, with Chinese state owned partners. He said that “Sinosteel does not participate in such unified activities."

Chinalco, China's largest aluminum maker is looking to diversify into other raw materials and has bought 9.3% of Rio Tinto.