Sinosteel Group, China's largest ferrous metals trader, is in talks to buy an 8 percent stake in Australian iron ore miner Fortescue Metals Group Ltd, The Australian Financial Review said.

Sinosteel's Australia deputy general manager William Ren told the paper in an interview that Sinosteel was in discussions with US-based fund Harbinger Capital Partners over half Harbinger's 16 percent stake in Fortescue, worth A$2.2 billion ($2.1 billion).

"We would prefer to have it all but we can't," Ren was quoted as saying.

Australian media have previously reported that Chinese state-owned metals firms, including Sinosteel, Chinalco and Baosteel, want to buy a stake in Fortescue, as Beijing seeks to wield more control over raw material supplies from Australia.

Fortescue founder Andrew Forrest is now Australia's richest man after a surge in the group's shares in the past year. The stock hit a record high of A$9.98 on Friday.