Anglo American is ramping up efforts to streamline its business amid takeover pressure from BHP with the sale of its nickel business.
Mining giant Anglo American has struck a deal to sell its Brazilian nickel business to Asian metals group MMG Limited in a transaction worth up to $500 million.
The sale, announced today, will see MMG acquire Anglo American’s two operating ferronickel facilities in Brazil—Barro Alto and Codemin—along with two undeveloped projects, Jacaré and Morro Sem Boné.
Under the terms of the agreement, Anglo American will receive an initial payment of $350 million when the deal completes. The company could earn an additional $100 million through a price-linked bonus scheme, whilst a further $50 million may be paid if MMG proceeds with developing the greenfield projects.
News of the nickel sale comes a day after Anglo American outlined the timeline for the listing of its platinum business.
“The sale of our nickel business after a highly competitive process marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business,” said Duncan Wanblad, Chief Executive of Anglo American.
“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 $5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses. MMG is well-respected as a safe and responsible operator and we believe our agreement represents a strong outcome not only for our shareholders, but also for our employees and Brazilian stakeholders. We will work together to ensure a successful transition.
“Anglo American’s portfolio focus, exceptional asset quality and growth options offer a differentiated investment proposition for investors. 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.”