The deputy head of the Chinese economic regulator, the National Development and Reform Commission (NDRC), Ning Jizhe, met with Trade Minister Steve Ciobo and Northern Development Minister Matt Canavan in Cairns on Monday to discuss investment co-operation in northern Australia, Chinese media reported.

The NDRC would need to give approval for any Chinese investment in Adani.

Mr Ciobo had written to the NDRC in September in support of Adani, saying the Australian government "welcomed foreign lending" to the major project, and would be happy to discuss it further in a meeting.

Chinese state media reported that Mr Ning, who was in Cairns to speak at a northern Australia investment conference, had discussed linking the Australian government's northern investment program and China's Belt and Road Initiative, and "strengthened investment co-operation", with Mr Ciobo and Mr Canavan.

Mr Ning had told the conference upgrading two-way investment could promote development in northern Australia. Mr Ciobo could not be reached for comment on the meeting with Mr Ning.

At the same time Adani is reportedly edging closer to securing a $1 billion loan from China to build its massive Queensland coal project's rail line,

The ABC reported that an unnamed director of Adani Mining, a subsidiary of Indian conglomerate Adani Group's company Adani Enterprises, had said the mine has secured Chinese funding for its Carmichael coal mine and rail infrastructure project, and that "financial close" was imminent.

The funding would be used to build a 388-kilometre long rail line connecting the Carmichael mine to Queensland coal ports.

Adani has been in talks with China Machinery Engineering Corporation - a Hong Kong-listed company which has nearly 80 per cent of its stock held by China National Machinery Industry Corporation - since January, when Adani Mining chief financial officer Praveen Khandelwal, along with Downer chief executive David Overall, met with CMEC president Zhang Chun in China.

In October, Adani Mining's chief executive Jeyakumar Janakaraj also told Reuters the miner was in "advanced discussions" to secure funding from export credit agencies, stating that all funding would be in place by the end of the Indian financial year, or March 31, 2018.

An Adani spokesman disputed the ABC's claim that the Adani director had said no federal funding would now be required.

"Adani has held productive meetings with a wide range of financiers for the Carmichael mine and associated infrastructure," he said in a statement.

"However, this does not negate the need for support from the federal and state governments, including a NAIF loan, every cent of which will be repaid by Adani with interest."

This is the opposite of Adani's earlier statements, in which it said the NAIF loan was not a prerequisite for the project.

"It's not critical. We have obviously applied for it because it's available," an Adani spokesman previously told Fairfax Media.

MineLife senior resource analyst Gavin Wendt said that as more Australian financiers declined to fund coal, it made sense Adani would turn to Chinese investors.

"The Chinese are very aggressive and have deep pockets, and these are the type of projects they like to get involved in," Mr Wendt said.

Fat Prophets resources analyst David Lennox said it was little surprise Adani has approached Chinese investors, as they both want long-term assurance.

"Adani is looking to secure the long-term supply of up to 60 million tonnes of coal from their mine to their own generators in India for years to come," Mr Lennox told Fairfax Media.

"If Adani can't get their funding here they'll either have to get it somewhere else or looking internally," he said.

With AAP