X2 Resources wants BHP thermal coal assets - iMINCO Mining Training Information

X2 Resources wants BHP thermal coal assets

iMINCONot long ago, BHP announced it would be shedding some of its less profitable resource assets.
The focus is to demerger and allow the diversified company to focus on its core operations.

X2 Resources targets BHP thermal coal operations

Hot on the tail of this news came reports that Xstrata boss Mick Davis was gathering investors to form a new mining company. As it happens, Davis has come out stating that he is after BHP’s unwanted coal assets.

The first news broke oversea in the United Kingdom when the The Sunday Times printed the story that Davis wanted to buy a big chunk ofthe thermal coal assets that BHP seemed to be taking less and less of an interest in.

This is an incredible move by Davis and has got the attention of analysts who have said this new play could reverse the 13 year old merger that BHP previously formed.

Last May, mining and resource giant Glencore made a bid for Xstrata and the company was merged. The $A44 billion Glencore takeover meant Davis has to step down from his management team post.

He led the diversified management team at Xstrata and turned the $500 million (valued) coal producer into a $50 billion company. He achieved this by working through a ten year plan of mergers and acquisitions.

Not content to rest on his past successes, Davis was back out there looking to achieve even greater success than he enjoyed at the helm of Xstrata. The new company is called X2 Resources and iMINCO reported a few weeks ago that it had raised $US3.75 billion in capital from investors.

Other reports coming out of the UK are pointing to an $US8bn loan from fiscal giant JP Morgan in the US.

The X2 management squad is made up of a bundle of ex-Xstrata executives, including financing director heavyweight Trevor Reid.

Given the state of the flattening global coal market and the hesitation of other mining companies to invest heavily in new coal projects, it’s thought X2 Resources will target the BHP thermal coal division.

“BHP assets could be worth close to $US15 billion”

Not always one to believe what we read in the media,there are also whispers that Davis could have BHP`s aluminum, nickel and manganese operations in his cross-hairs. These combined assets are thought to be valued close to $US15 billion.

Davis has been quoted as saying, now is the perfect time to begin discussions around the acquisition opportunities that have presented themselves to the company.

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Mining news in Australia rarely catches the attention of local or even national news channels, unless of course the owner is a personality or political figure.

“many opportunities to start a mining career”

Many people are still figuring out ways to get a mining job, and despite the coal industry transitioning from a V8 engine to a more sedate up-market family saloon, there are still many opportunities for people to start a mining career.

One way to keep up-to-date with Australian mining news is to get weekly updates via email from iMINCO.

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iMINCO Project News is a jam-packed resource newsletter that helps thousands of Australians figure out the mining and resource industry in Australia. Each week, there are featured stories about real mining projects and links to hundreds of mining jobs.

This is a ‘no-cost’ email service and if you don’t feel you’re getting value out of receiving it, simply remove yourself from the list with the click of a mouse. Go on – take a test ride and accelerate your mining career.

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