Fortescue Metals confirmed on Monday that it had held talks with potential equity investors after shares in the Western Australian iron ore group surged on a report that China Investment Corp, the $200bn sovereign wealth fund, and China Shenhua, the miner, were in informal discussion to buy a 15.85 per cent stake.

Fortescue declined to name the interested parties though it admitted it had for some time held talks with groups from China and other countries, adding none of the “confidential discussions … could be considered concluded or at a stage requiring specific disclosure”.