Noble ventures into mining with US$500m private deal

Noble, X2, TPG are the players.

According to OCBC, Noble Group has announced that it has agreed to invest in a newly established private mining venture – X2 Resources – where Noble, X2, TPG will each put in US$500m. 

The move is to create a new mid-tier diversified mining and metals group by leveraging the extensive track record of the X2 Team in identifying and acquiring assets/businesses at an opportune time in the cycle and applying their proven approach to integration and value enhancement to the resulting portfolio of operations.

Here's more from OCBC:

Under the agreement, Noble will be X2 Resources’ preferred marketer and provider of supply chain management (SCM) and logistics services.

According to management, the investment is consistent with Noble’s previously communicated strategy of primarily focusing on its core competence as a supply chain manager, rather than a producer of natural resources.

Management also believes that the relationship with X2 will open opportunities for Noble to provide energy, manage X2’s freight requirements and risk-manage the supply chain for example.