Anglo American to Sell Nickel Business for $500 Million

Johannesburg – Anglo American plc (Anglo American) has finalized an agreement to divest its nickel operations to MMG Singapore Resources Pte. Ltd, a fully owned subsidiary of MMG Limited (MMG), for a potential cash sum of up to $500 million (the Transaction).

The nickel operations include two ferronickel plants in Brazil – Barro Alto and Codemin – along with two promising greenfield projects – Jacaré and Morro Sem Boné.

The total cash consideration of up to $500 million includes an immediate payment of $350 million upon completion; the possibility of up to $100 million in a price-linked earnout(1); and an additional contingent cash consideration(2) of $50 million based on the Final Investment Decision (FID) for the development projects.

On Tuesday, (18 February 2025), Duncan Wanblad, Chief Executive of Anglo American, remarked on the Transaction: “The divestment of our nickel operations, following a competitive process, represents a significant milestone in our efforts to streamline our portfolio and enhance our focus on copper, premium iron ore, and crop nutrients.”

“This agreement, alongside the deals finalized in November 2024 to sell our steelmaking coal operations, is anticipated to yield gross cash proceeds of up to $5.3 billion, highlighting the quality of our steelmaking coal and nickel sectors.”

“MMG is recognized as a responsible and safe operator, and we believe this agreement delivers strong value not only for our shareholders but also for our employees and stakeholders in Brazil.”

“We are committed to ensuring a seamless transition.”

Wanblad continued: “The strategic focus of Anglo American, along with our exceptional asset quality and growth opportunities, provides a distinct investment proposition for our investors.”

“We are unlocking the latent value of Anglo American, reshaping our business into a simpler, more resilient, and agile entity that will enable clear value transparency in the market.”

Cao Liang, Chief Executive of MMG, commented: “We are thrilled to acquire Anglo American’s nickel operations which enhance our business diversification and fortify our presence in Latin America.”

“This business possesses a skilled team, significant growth potential, and a proven track record in sustainability performance, and we are eager to build upon this positive legacy.”

“MMG and Anglo American share a long history of collaboration and mutual values, as demonstrated by our commitment to the ICMM principles. We look forward to working together through to completion.”

Anglo American’s nickel operations are strategically positioned to cater to both the stainless steel and battery supply chains.

The business encompasses the operating assets of the Barro Alto mine, Niquelândia mine, and the Barro Alto and Codemin ferronickel processing plants, collectively producing 39,400 tonnes of nickel in 2024, along with two promising greenfield projects: Jacaré with approximately 300Mt of mineral resources, and Morro Sem Boné (MSB) with a total estimated mineralization of 65Mt.

Barro Alto is the sole nickel mine globally certified by the Initiative for Responsible Mining Assurance, having achieved the IRMA 75 level of assurance in 2024.

The Transaction is contingent upon several conditions, including customary competition and regulatory approvals. The initial cash consideration will be adjusted in line with standard completion procedures, with finalization expected by Q3 2025.