During the second half of 2012, low iron prices caused potential liquidity problems for FMG forcing it to dramatically scale back its expansion plans and there were reports that the company was considering an asset sale.
According to media reports, FMG has hired two companies, Lazard and Macquarie Group, as financial advisers on any potential sales.
"We've had very strong interest and we've begun the process of engaging with the selected proponents to work through the details," says FMG CEO Mr Neville Power. "We expect to have a shortlist within the next five weeks or so."
It has been suggested the company may sell up to 40% of the assets for as much as $US 4bn.
The recent recovery in iron-ore prices has seen work restart on a number of projects including the Kings deposit and capacity enhancement projects. FMG currently has contracts totalling $US 2.2bn in place for new lines and line capacity upgrades, including track-doubling on the existing mainline, which when completed will boost rail capacity to 155 million tonnes per year.