Anglo American to Sell Nickel Business to MMG for Up to US$500 Million

Anglo American (LSE:AAL,OTCQX:AAUKF) has agreed to sell its Brazil nickel operations to MMG Singapore Resources, a subsidiary of MMG (OTC Pink:MMLTF,HKEX:1208), for a cash consideration of up to US$500 million.

According to a Tuesday (February 18) press release, the transaction includes Anglo American’s Barro Alto and Codemin ferronickel operations, along with two development projects, Jacaré and Morro Sem Boné.

The purchase price comprises an upfront payment of US$350 million, a potential price-linked earnout of up to US$100 million and a further US$50 million contingent on a final investment decision for the development projects.

The transaction remains subject to regulatory and competition approvals, with completion expected by Q3 2025.

Anglo American Chief Executive Duncan Wanblad said the sale is a key milestone in furthering the company’s restructuring strategy, which involves divesting certain assets to focus on copper, premium iron ore and crop nutrients.

“Today’s agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate a total of up to US$5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses,” Wanblad explained, adding that the company sees MMG as a safe and responsible operator.

MMG Chief Executive Cao Liang described the acquisition as a strategic move to diversify the company’s asset base and expand its presence in Latin America, highlighting MMG’s longstanding collaboration with Anglo American.

Anglo American’s nickel operations serve both the stainless steel and battery sectors, and Barro Alto is the only nickel mine globally that is certified by the Initiative for Responsible Mining Assurance.

Together, the company's assets produced 39,400 metric tons of nickel in 2024.

Since last year, Anglo American has been refocusing to concentrate on key commodities while divesting non-core assets.

As mentioned, in November 2024, it reached agreements to sell its steelmaking coal business.

Anglo American has also announced plans to divest its De Beers diamond unit, and is proceeding with the planned demerger of its platinum operations, which is expected to be completed by June 2025.

Platinum remains key for the automotive industry, and despite growing demand for electric vehicles, which do not use platinum-group metals, the company believes supply constraints in South Africa could support future pricing.

Anglo American will retain a 19.9 percent stake in the demerged platinum unit, but will not have board representation. The company has stated that it intends to gradually reduce its stake over time.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.