After Glencore International takes over Xstrata Plc, former top management of Xstrata are planning their next move. CEO Mick Davis and CFO Trevor Reid are drawing up plans to set up a privately backed mining fund.

The purpose of the fund is to purchase undeveloped resources that mining companies are seeking to sell according to sources who spoke on condition of anonymity to Bloomberg. They added that there are no finalized plans yet and the two would most likely seek Middle East investors for the fund.

There are many others who have explored this field of mining finance, such as Lloyd Pengilly, who is now setting up his own fund from investors coming in from Qatar and Poland. The focus of Pengilly's fund is African mining assets.

When asked for an official comment on the plan, Xstrata declined to make any. What is certain is Davis leaving Xstrata in six month's time.