X2 in 'serious' talks for Rio Tinto's coal assets in Australia -FT

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June 29 (Reuters) - Former Xstrata boss Mick Davis' X2 Resources is in "serious" talks to purchase some of Rio Tinto (LSE: RIO.L - news) Plc's Australian coal assets, the Financial Times reported citing people familiar with the matter.

The multibillion-dollar deal talks are at an early stage and have generated solid interest from both sides, the FT reported. (http://on.ft.com/1dt6r98)

The discussions could also extend to include Rio's metallurgical coal assets in Queensland, the newspaper said.

A spokesman for X2, Michael Oke, declined to comment.

A sale of Rio's thermal coal assets in New South Wales would be the biggest divesture by the company under Chief Executive Sam Walsh, for the past two and a half years, the FT said.

A spokeswoman for Rio Tinto declined to comment.

Earlier this month, Reuters reported that X2, which was long considered a front runner for Barrick Gold (Hanover: ABR.HA - news) 's Zaldivar copper mine in Chile, bowed out of the race after it was outbid in the first round of the sale process.

More than a year after he launched his private fund, Davis has been coming under pressure to build a new mining empire with the $6 billion in capital he has raised.

X2 has so far expressed interest in a number of assets in copper, coal and other commodities, but has yet to make its first acquisition. (Reporting by Shivam Srivastava in Bengaluru; Editing by Alan Crosby and Chris Reese)