Anglo American sells nickel business for up to US$500mln

Anglo American has entered into a definitive agreement to sell its nickel business to a subsidiary of MMG.

MMG Singapore Resources will purchase two ferronickel operations in Brazil – Barro Alto and Codemin – and two greenfield growth projects –Jacaré and Morro Sem Boné.

The company will pay US$350mln at completion of the deal, with up to US$100mln in a price-linked earn-out, and a contigent cash consideration of US$50mln linked to the final investment decision for the development projects.

Duncan Wanblad, Chief Executive of Anglo American, says '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.

'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$5.3bln of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses.'

Anglo American says their nickel business is well positioned to serve both the stainless steel and battery value chains.

It includes the operating assets of Barro Alto mine, Niquelândia mine, and the Barro Alto and Codemin ferronickel processing plants, which together produced 39,400t of nickel in 2024. Two high-quality greenfield growth development projects, Jacaré with c.300Mt of mineral resources, and Morro Sem Boné, have a total potential mineralisation of 65Mt.

The company highlights that Barro Alto is the only nickel mine in the world certified by the Initiative for Responsible Mining Assurance, having achieved the IRMA 75 level of assurance in 2024.

The transaction is subject to a number of conditions, and completion is expected by the third quarter of 2025.