Former Xstrata boss raises $1bn for X2 Resources

Former Xstrata boss Mick Davis has raised $1.0 billion (740 million euros) from trading house Noble and private equity firm TPG for new mining firm X2 Resources, it said on Monday. "X2 Partners, Noble Group Limited and TPG today announce that they have agreed to invest in a newly established private mining venture, X2 Resources," said a statement from X2 Partners, which was established by Davis and other former Xstrata executives. "Under the terms of the agreement with X2, Noble and TPG will each invest $500 million." The announcement comes just months after Davis lost his job as Xstrata chief executive following its $44-billion takeover by Swiss commodities giant Glencore in May. The private venture has been created by Davis, Xstrata's former chief financial officer Trevor Reid and a team of former executives, in order to "seek value creating opportunities in the mining and metals sector", it added. X2 Resources will seek to identify and purchase assets and businesses, but did not specify what kind of metals or which regions they would consider. The group added that it was currently in discussions with a "select" group of potential investors. "We are pleased that Noble and TPG share our enthusiasm for this enterprise to create significant value in the mining and metals industry at this opportune time," said Davis in the statement.