Davis adds $1bn to mining startup

070410 South Africa must improve its energy supply and transport infrastructure, and boost investment in education to ensure the nation fully benefits from global commodities demand, Xstrata Plc Chief Executive Officer Mick Davis said .photo by Simphiwe Mbokazi 53

070410 South Africa must improve its energy supply and transport infrastructure, and boost investment in education to ensure the nation fully benefits from global commodities demand, Xstrata Plc Chief Executive Officer Mick Davis said .photo by Simphiwe Mbokazi 53

Published Oct 15, 2014

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Johannesburg - Mick Davis, Xstrata’s former chief executive officer, got an additional $1-billion from investors for his X2 Resources mining startup, bringing the total he has raised for the business to $4.8-billion.

X2 now has $3.3-billion of committed equity capital and a further $1.5-billion conditional, it said on Wednesday in a statement.

“With almost $5-billion in equity and access to significant additional debt funding, X2 Resources is uniquely positioned and we are currently reviewing a number of opportunities in the metals and mining sector,” Davis said in the statement.

He raised $3.75-billion in March from five investors including Asia’s largest raw-materials trader Noble Group, private-equity fund TPG Capital and sovereign-wealth and pension-fund investors. X2 didn’t name the new investors.

South Africa-born Davis, 56, is looking to repeat his success at Xstrata, where he led the management team that took the coal producer from a company with a $500-million market capitalisation to one valued at $50-billion through a decade of mergers, acquisitions and expansion.

Bloomberg

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