Oct. 6 (Bloomberg) -- Fortescue Metals Group Ltd., Australia’s third-biggest iron ore exporter, fell for a 10th day in Sydney, its longest losing streak, on concern it may fail to get $6 billion in funds from Chinese lenders for expansion.

Perth-based Fortescue dropped 5.3 percent to A$3.40 at the 4:10 p.m. local time close, taking its decline for the past 10 trading days to 19 percent. The losing streak is the longest since it began trading in 1987 when it was known as Pharoah Metals Corp.

Fortescue last week missed a self-imposed deadline to secure funding as part of an iron ore price agreement with the China Iron & Steel Association and Baosteel Group Corp. The miner, controlled by billionaire Andrew Forrest, needs the capital for a plan to more than double exports by 2012.

“The market is yet to be convinced that a funding deal can be struck, and every day that passes raises concerns of a possible equity raising,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “There are ongoing concerns about the company’s funding model and the shares seem stretched to many people.”

Fortescue spokesman Cameron Morse wasn’t immediately available to comment.

Fortescue held talks with major Chinese financiers, Forrest said last month, without naming them. Fortescue said securing financing is a condition of its agreement to cut contract iron ore prices for Chinese mills by 35 percent.

The price agreement should be honoured whether Fortescue secures financing, said Shan Shanghua, general secretary of the Chinese steel association, Caijing magazine reported Sept. 30.

To contact the reporters on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.netShani Raja in Sydney at sraja4@bloomberg.net.

Last Updated: October 6, 2009 02:11 EDT