Former Xstrata boss Mick Davis has launched back into the mining sector, raising $1 billion for his next industry play X2 Resources.
Two financial institutions are backing Davis’ latest project, with trading house Noble Group and American private equity firm TPG Capital each investing $500 million into X2 Resources.
"X2 Partners, Noble Group Limited and TPG today announce that they have agreed to invest in a newly established private mining venture, X2 Resources," X2 Partners said in a statement.
The financiers said X2 Resources aims to become a "mid-tier diversified miner and metals group".
Davis stepped down from Xstrata following a $44 billion Glencore takeover in May.
Notably, X2 Resources preferred output marketer and provider of supply chain management and logistics services will be Noble, which is also a Glencore competitor.
The company added they are continuing discussions with “a further select group of potential investors” for the new venture.
The mining company’s name X2 appears to be playing on Davis’ success at Xstrata pre-Glencore days.
The X2 team is made up of a raft of ex-Xstrata executives including former finance director Trevor Reid.
Business Spectator reports the private venture has been created to "seek value creating opportunities in the mining and metals sector".