Mining startup to enter sector with $4.8 billion
Former Xstrata Plc chief executive officer Mick Davis is getting back into the mining business in a big way. Bloomberg reported that the former CEO has amassed $4.8 billion for his startup company, X2 Resources.
X2 now has $3.3 billion of committed equity capital and a further $1.5 billion conditional, it said today in a statement.
“With almost $5 billion in equity and access to significant additional debt funding, X2 Resources is uniquely positioned and we are currently reviewing a number of opportunities in the metals and mining sector,” Davis said in the statement.
Davis raised $3.75 billion in March from five investors including Asia’s largest raw-materials trader Noble Group (NOBL), private-equity fund TPG Capital and sovereign-wealth and pension-fund investors. X2 didn’t name the new investors.
South African-born Davis, 56, is looking to repeat his success at Xstrata, where he led the management team that took the coal producer from a company with a $500 million market capitalization to one valued at $50 billion through a decade of mergers, acquisitions and expansion.