Anglo American Sells Nickel Business to MMG for Up to $500 Million
Anglo American has agreed to sell its nickel business to mid-tier miner MMG for up to $500 million, the companies announced last week.
The deal, which includes two ferronickel operations and two greenfield projects in Brazil, aligns with Anglo American’s strategy to streamline its portfolio and focus on copper, premium iron ore, and crop nutrients.
Anglo American CEO Duncan Wanblad stated that the agreement followed a “highly competitive process” and represented a strong outcome for shareholders, employees, and Brazilian stakeholders.
The nickel assets involved in the transaction include the Barro Alto and Codemin ferronickel operations, as well as the Jacaré and Morro Sem Bone development projects.
MMG CEO Cao Liang emphasized that the acquisition would enhance the company’s diversification strategy and strengthen its position in Latin America. “Anglo American’s nickel business is well-positioned to serve both the stainless steel and battery value chains,” MMG stated.
The operations involved include the Barro Alto and Niquelândia mines and their associated ferronickel processing plants, which together produced 39,400 tons of nickel in 2024.
Additionally, the two development projects offer significant resource potential, with Jacaré estimated at 300 million tonnes of mineral resources and Morro Sem Bone at 65 million tonnes of mineralization.
Barro Alto stands out as the world’s only nickel mine certified by the Initiative for Responsible Mining Assurance (IRMA), having achieved the IRMA 75 level of assurance in 2024.
The transaction consideration includes an upfront cash payment of $350 million upon completion, with an additional $100 million contingent on a price-linked earnout and $50 million tied to a final investment decision for the development projects.
The deal is subject to regulatory approvals and customary competition clearances, with the transaction expected to close by the third quarter of 2025.
Wanblad noted that this sale, along with the recent agreements in November to sell Anglo American’s steelmaking coal business, is expected to generate up to $5.3 billion in gross cash proceeds.
He added, “We are unlocking the inherent value of all of Anglo American as we create a much simpler, more resilient, and agile business that will enable full value transparency in the market.”
