Mick Davis, the former head of Xstrata, is now looking for his first significant acquisition since launching investment in X2 Resources. It is reported he is in discussions with Rio Tinto about buying some of its Australian thermal coal assets.
This trade would highlight a large restructuring of Rio by ending its investments in thermal coal. There is also potential it could lead to acquisition of Rio’s metallurgical coal assets in Queensland.
Davis has been searching for assets for two years. He previously approached BHP Billiton, offering to buy a collection of its non-core mines but BHP put it into its newly listed company South32.
In 2013, Rio sold an Australian coal mine, Clermont, to Glencore and sold coal assets in Mozambique.
Neither company has made a comment on the discussions.
Edited from Source: Financial Times by Harleigh Hobbs