Australian iron ore mining company Fortescue Metals has failed to meet its deadline for a $6bn funding deal with Chinese banks.

The deadline was 30 September 2009.

The funding was part of a deal Fortescue had struck with China Iron & Steel Association (CISA) and Baosteel Group to supply 18 million tonnes of iron ore to the steel industry in China by 31 December.

Fortescue’s deal was 3% less than the price set by Rio Tinto with non-Chinese steel makers in May 2009.

The company said in a statement that it intends to continue working co-operatively with CISA and intends to continue providing it with attractive iron ore pricing if requested.

Meanwhile, CISA, aiming for a price cut of about 40%, is in iron ore negotiations with BHP Billiton and Brazil’s Vale following suspended talks with Rio Tinto.