Fortescue Metals Group Ltd, Australia's third-largest iron ore miner, has missed a Sept 30 deadline to arrange financing with Chinese investors but remains in talks to reach agreement, the firm said on Wednesday.

It said in a one-paragraph statement that it would contine to work with Chinese steel maker Baosteel and the China Iron and Steel Associaiton on the plan. It did not elaborate.

Fortescue had agreed to sell Chinese steel mills 20 million wet tonnes of iron ore at a 3 percent discount to its competitors provided they arranged $5.5-$6 billion in financing by Sept 30 to fund a big expansion programme deeper into the Pilbara iron belt.

(Reporting by James Regan; Editing by Mark Bendeich)