Hunan Valin Iron & Steel Group has joined the growing band of Chinese entities showing interest in Australia’s resources sector after it emerged that it had held talks with Fortescue Metals, the country’s third-largest iron ore producer behind Rio Tinto and BHP Billiton.

Fortescue, which has a long-standing supply agreement with China’s Baosteel, this week said it had held talks with Anglo American, the London-listed mining group, and China Investment Corp, the $200bn sovereign wealth fund.

The focus on Fortescue comes as China attempts to make large investments in Australia’s resources sector. Chinalco is proposing to inject $19.5bn into Rio Tinto, the indebted Anglo- Australian mining group, while Oz Minerals this week agreed a A$2.6bn ($1.7bn) takeover offer from Minmetals, the Chinese producer.