Ex-Xstrata CEO’s X2 Said to Be in Talks With Rio on Coal

X2 Resources, the private-equity firm founded by former Xstrata Chief Executive Officer Mick Davis, is in talks to buy Rio Tinto Group’s controlling stake in three Australian coal mines, according to two people familiar with the matter.

The negotiations are at an early stage and any deal, which may fetch $2 billion to $4 billion, could take two months to finalize, said one of the people, who asked not to be identified because the talks are private. The Rio mines in New South Wales have positive cash flow, despite the current coal-price slump, the person said.