Australia's third-biggest iron ore miner, Fortescue Metals Group, has started making some business transactions in Chinese yuan, Chief Executive Andrew Forrest said on Tuesday.

"Fortescue has started transacting in renminbi. We are exploring the possibilities of being paid with renminbi and purchasing equipment in renminbi from our renminbi bank accounts," Forrest told a meeting of business leaders in Perth.

Fortescue sells the lion's share of its iron ore to Chinese steel mills.

The company completed a business-to-business transaction in yuans on Friday but deal did not involve the sale of iron ore, Chief Operating Office Nev Power said.

Global miner Rio Tinto has been studying the possibility of switching iron ore price settlements to Chinese yuan, the company's iron ore division chief Sam Walsh said last month.

While Rio will be looking at the possibility of switching iron ore price settlements to yuan, Walsh said the company had no initial plans to do it.

Iron ore sold to China, the world's biggest consumer of the steelmaking raw material, is denominated in US dollars.

Fortescue, listed on the Australian Stock Exchange, was also considering additional listing on the Hong Kong and Shanghai Stock Exchanges, according to Forrest.