Davis has raised the $1 billion from commodities trading house Noble and private equity group TPG for X2 Resources, a company he has formed with other former Xstrata executives.

Another key executive at X2 Resources is former Xstrata chief financial officer Trevor Reid.

According to X2, other executives “responsible for the creation of Xstrata” will lead the X2 team.

Davis’ return to mining has long been expected since he was left on the outside when Ivan Glasenberg and Glencore took control of the deal that merged Glencore and Xstrata earlier this year.

According to the Financial Times, TPG’s investment comes at a time of growing interest from private equity and sovereign wealth groups in the resources sector.

For Noble, the deal will likely bring lucrative offtake agreements.

In a way it is very similar to what Xstrata had in place with Glencore, before the commodities trader decided to take it over.

“We are pleased that Noble and TPG share our enthusiasm for this enterprise … at this opportune time,” Davis said.

Noble and TPG have each put in $500 million.

According to UK company records, Davis and Reid were appointed as directors of X2 Resources in May.