CIC talking to Fortescue on $1 bln-plus convertible

SYDNEY/HONG KONG Aug 11 (Reuters) - Fortescue Metals (FMG.AX) and China Investment Corp (CIC), China's $200 billion sovereign wealth fund, are in advanced talks on a $1 billion-plus convertible bond deal to help the iron ore miner fund expansion, two sources familiar with the deal said on Tuesday. The talks follow news on Monday that China's Yanzhou Coal (1171.HK) agreed to buy coal miner Felix Resources FLX.AX in a deal worth up to $3.3 billion, and as China is looking for alternative, less controversial strategies -- such as joint ventures and financing deals -- to invest in global natural resources to support its domestic economic growth.

Spokesmen for CIC and Fortescue both declined to comment when contacted by Reuters. (Reporting by Joseph Chaney and George Chen)