Predict your next investment


See what CB Insights has to offer


Dead | Dead

Total Raised


About X2 Resources

X2 Resources is a private diversified mining venture led by Mick Davis, the former head of Xstrata.

X2 Resources Headquarter Location


Latest X2 Resources News

Why X2 Resources CEO Mick Davis wants Rio's assets in Australia

Apr 5, 2018

</strong></p> <p> As Business Review Australia’s sister site Mining Global recently wrote, the mining industry was shocked to discover former Xstrata CEO  Mick Davis , who now operates mining...</p> <p><a href="'s-assets-in-Australia">'s-assets-in-Australia</a></p>      Cancel      As Business Review Australia’s sister site Mining Global recently wrote, the mining industry was shocked to discover former Xstrata CEO  Mick Davis , who now operates mining investment group X2 Resources, is rumored to be in serious discussion to purchase some of  Rio Tinto ’s coal assets in Australia. Although still in the very early stages, the multibillion-dollar deal has generated solid interest from both sides. With more than $5.6 million at his disposal, Davis is still looking to acquire his first assets for X2. Earlier this month, the company was in the bidding war to purchase  Barrick Gold’s Zaldivar copper mine in Chile . Unfortunately, the company was outbid in the first round of the sale process. In addition, reports surfaced last year that Davis wanted to purchase BHP Billiton’s thermal coal assets, while it was also rumored to be in the running for Vale’s nickel business earlier this year. According to reports, Rio Tinto is open to possibly relinquishing its thermal coal assets in NSW in addition to its metallurgical coal assets in QLD. If Rio Tinto follows through and sells it thermal coal assets in  New South Wales , it will be the biggest divesture by the company under CEO Sam Walsh. "I don't think Rio are wedded to these assets and if they get the right valuation for them I'm sure they would consider divesting," said Michelle Lopez, senior investment manager at Aberdeen Asset Management. "Both possible acquirers [X2 and Glencore] are opportunistic, so the question becomes what's an appropriate valuation given these are long-life, scalable assets, but the coal price is unlikely to see much upside over the medium term." The deal between would make sense for both sides, as X2  has coal and copper are on the top of its wish-list, however, there could me hurdles to climb as Glencore is also rumored to be interested in acquiring Rio’s coal assets. Rio’s Hunter Valley coal mine is right next door to Glencore’s  coal business  and the Swiss company tried to strike a deal for the coal mines with Rio Tinto a year ago as merging these mines with nearby coal assets owned by Glencore would lower the cost of production. According to sources,  Glencore  is prepared to put $1.5-$2 billion on the table to acquire the assets, while X2 is likely willing to dish upwards of $3 billion. Let's connect!

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.