Xstrata Plc former chief executive officer Mick Davis had raised USD1 billion from Noble Group and TPG. The amount raised would be used by Davis to start a resources firm, according to a Bloomberg report.

Asia's biggest raw materials trader, Noble and private equity firm TPG had agreed to invest USD500 million each in the new company X2 Resources. This was according to a statement today from X2 Partners. Davis and ex-Xstrata Chief Financial Officer Trevor Reid established X2 Partners.

 X2 was also in discussions with other potential investors. The funds raised by Davis would be used to start a diversified mining and metals group, said the Bloomberg report. The 55 year-old Davis and 52 year-old Reid were part of the team that established Xstrata.

SP Angel Corporate Finance analyst John Meyer said, "This is a great time to acquire assets in the mining sector. The majors continue to offer sub-scale assets, including some better quality but smaller operations as they refocus on their larger cash generators. Investors who follow Davis and other turnaround specialists in the sector could make a killing."