Mick Davis, the mining tycoon who left Xstrata after its merger with Glencore, has raised $3.75 billion (£2.25 billion) to invest in buying up unwanted mines from his former rivals.
Davis joins a flurry of other mining executives who have privately raised billions of dollars to exploit the folly of the giant companies who invested too much in too many mines before the global financial crisis killed off demand for minerals.
However, Davis’s fund is massive in comparison to those of his rivals.
Investors in his new project, which is called X2, include Asian raw materials trader Noble Group, private equity company TPG and three other sovereign wealth funds and pension funds. Davis has secured $2.5 billion of committed equity funding plus pledges of a further conditional $1.25 billion from the five.
Davis wants to recreate his old Xstrata empire, which he built up similarly from a small base of $500 million to be worth tens of billions of dollars.
Miner Lonmin today announced that non-executive director Brian Beamish will take over on an interim basis from the company’s chairman, Roger Phillimore, who will retire at the end of next month.