X2 resources could go after Vale’s nickel assets

X2 Resources could make a play for Vale’s nickel business.

Bloomberg reports two people close to the matter have valued the asset at between $5 billion to $7 billion.

Former Xstrata boss Mick Davis has raised US$3.75 billion from investors in a bid to buy mining assets and launch X2 Resources as a mid-level diversified resource company.

Last year, the company, based in London, said it had netted US$2.50 billion of committed funding and a further US$1.25 billion of conditional funding from a group of five investors, each contributing equally.

Davis stepped down from Xstrata following a $44 billion Glencore takeover last May and will be looking to emulate his success there.

Official talks between X2 Resources and Vale are yet to take place.

Vale flagged its intention to sell a 30-40 per cent stake in its metal unit last December.

It is thought the whole unit, which includes copper as well as nickel is worth as much as $35 billion.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.