Copying and distributing are prohibited without permission of the publisher

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...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

subscribe to this feed Comment & analysis

Upcoming Events

MB Glossary

From Aluminium to Zinc...
Search this free glossary on metals

Try the new Metal Bulletin BETA site...

We've added some great new features and tools which we think you'll find useful:

  • Easier to use navigation including links to new sections
  • Cleaner interface for the Price Book with easier to use data views
  • More dedicated pages for specific metals e.g chrome, antimony, nickel
  • Better search tools for news and prices with handy filters

Simply click 'Yes please' below to go straight to the BETA site
(Please note: you will need to log into the BETA site on your first visit. Plus you can return to the original site any time you wish)