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Mick Davis set to raise funds to invest in resources, possibly Las Bambas
May 09, 2013 - 16:39 GMT
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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Euromoney Institutional Investor PLC.
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