ex xstrata boss and noble

Hi All.

October 2nd 3013 Noble Group.
The Australian Financial Review.

Former Xstrata boss and serial deal maker Mick Davis has drummed up $US1 billion to do what he loves best - making acquisitions. After transforming Xstrata into one of the world,s top mining companies,Davis has been drumming up some serious partners for his new mining venture,X2 Resources.

Hong Kong-based Noble Group and private equity firm TPG have this week both agreed to invest $US500 million.
Davis now has $US1 billion in his coffers,double what Xstrata was worth when he took the helm in 2001. There is no shortage of assets to buy as BHP,Rio Tinto,Anglo America and others seek to offload an estimated $US35 billion in assets alone. He is also talking to other investors.

Davis is expected to look at buying assets at the early stage of development and with low production costs, rather than establish mines. Noble's involvement signals iron ore and coal are likely to be at the top od Davis's shopping list.

Nobles investment is about establishing a marketing relationship with a potentially powerful new entrant to the market. Ironically the commodities traders relationship with X2 Resources will not be unlike the arrangement Xstrata has with Glencore.

The main game is the valuable off-take agreements it will secure from the partnership. It is an integrated strategy that means Davis gets the supply chain guarantee he needs to develop the assets while Noble gets the commodity.

Ideal opportunity.

This fits in with Nobles ambitions to develop the trading market in hard resources like coal and iron ore. The last thing it needs is for producers like BHP Billiton,Rio Tinto and Vale to dominate. It needs alternative supply sources.
Noble was heavily involved in putting the deal together and its executives see it as the ideal opportunity to harness the operational and deal-making expertise of someone like Davis.

Goldman Sachs is reportedly working with Davis on his new venture.

Printed the main part of the story.

Regards
Westcott.