Mick Davis, the founder and former chief executive of Xstrata, has raised $1bn (£619m) in the first stage of his plans to create yet another mining giant.
Davis, who quit when Xstrata was taken over by Glencore for $46bn in May, plans to build a “mid-tier diversified mining and metals group”. X2 Resources is being assembled at Xstrata’s former St James’s headquarters, which Davis – widely known as Mick the Miner – was allowed to keep on for 12 months after the takeover. His team includes former Xstrata finance director Trevor Reid.
Mr Davis walked away from the Glencore deal with just over £15m and Mr Reid with £5.5m. Both would have received more had Glencore shareholders not opposed a £140m retention package for about 70 senior managers.
The first round of financing sees Hong Kong-based Noble Group, a commodities distributor and trader, and the private equity firm TPG each investing $500m in X2 Resources.