FMG not in a hurry to sell a stake in its mines

Fortescue Metals Group has been approached by two parties interested in buying a stake in its mining operations, but the company is not in a rush to sell.

In an interview on Wednesday FMG’s chief executive, Nez Power, said the miner would wait for the iron ore price to recover before entering serious discussions about a sale.

It was March this year when  Power told The Australian  the company may look to sell a minority stake in its Pilbara assets.

It came after the company posted a first-half profit of $US331 million, down from the $US1.7 billion it posted a year earlier, due to the depressed price of iron ore.

The commodity dropped to its lowest price ever in July of $US44.10 per tonne. It has since made a recovery, and was last trading at $US56.40 per tonne.

This is still a far cry from the $US82 per tonne iron ore was trading at in September 2014, or the $US134 per tonne it was valued at in 2013.

Power said he believes the commodity is still trading at unduly depressed prices, and that FMG was not in a hurry to sell.

"We are in very strong shape and therefore we can be patient," Power said.

"That might mean we need to wait until potential investors think the iron ore price is about to go up again, and then they will be more motivated."

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