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Mick Davis set to raise funds to invest in resources, possibly Las Bambas

May 09, 2013 - 16:39 GMT Location: London

KEYWORDS: Mick Davis , Xstrata , Glencore , ceo , Ivan Glasenberg , fund , Goldman Sachs

Former Xstrata ceo Mick Davis has hired Goldman Sachs as part of a plan to raise a major mining fund, potentially worth billions of dollars, Metal Bulletin understands – and could make a play for Las Bambas.

"First up is likely to be Las Bambas, being sold by Glencore as part of the Chinese [authorities'] condition [for approving the merger between Glencore and Xstrata]," an analyst said. Davis viewed the 400,000 tpy Las Bambas project, which was due to be commissioned at the end of 2014 after an estimated $5.2 billion in investment, as a flagship project for his former company. "Second choice [could be] International Ferro Metals for its ferro-chrome – that’s where Xstrata started in the ferro-chrome business," the analyst added. "There is so much opportunity coming out of Rio Tinto, BHP and Anglo – it’s like feeding Chum [dog food] to a school of starving sharks," the analyst said. "I heard Davis’s team had been offered an initial $200 million, but I suspect their broker will turn this into pledges of $1 billion in fairly short order and...

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