Atlas Iron Ltd, the fourth largest Australian iron ore producer, said it has been seeking Chinese investors, 21st Century Business Herald reported Thursday.

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Atlas Chairman David Flanagan told the newspaper that the company has first-level magnetic iron mining resources and is looking for partners to increase its annual capacity to 65 million tons.

Atlas Iron Ltd said it held talks with Chinese groups to sell a stake in its A$2.7 billion ($2.9 billion) Ridley mine in Western Australia's Pilbara region, Bloomberg reported Thursday.

Flanagan said company executives are talking with steelmakers, transportation companies, infrastructure constructors, port companies and financing companies.

He declined to reveal the names of its potential Chinese partners.