Posted on 19 Feb 2025
Anglo American is selling its nickel business to MMG Singapore Resources, as part of its wider restructuring strategy to focus on copper, premium iron ore and crop nutrients.
The London-based mining company has signed a definitive share purchase agreement with MMG to sell its nickel assets in Brazil for up to $500mn in cash, the companies said Tuesday. MMG Singapore Resources is a subsidiary of Australia and China-headquartered, mid-tier base metals producer, MMG Limited.
Kallanish Power Materials understands the deal includes upfront $350m in cash and the potential for up to $100m in semi-annual payments linked to the realised nickel price for four years. A further cash consideration of up to $50m, linked to final investment decisions on projects in development, is also part of the agreement.
Last year, Anglo announced plans to restructure the company, divesting steelmaking coal, demerging Anglo American Platinum, and divesting or demerging its De Beers diamond asset.
The sale of the nickel unit came after a “highly competitive process,” says Duncan Wanblad, chief executive of Anglo American. It “marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business.”
The nickel sale agreement, together with those signed in November to sell the miner’s steelmaking coal business, is expected to generate up to $5.3 billion of gross cash proceeds, the executive adds.
“This acquisition is a great example of our growth strategy in action, as we expand our geographical footprint and diversify MMG’s metals portfolio,” comments MMG chairman Jiqing Xu.
Anglo’s nickel operations include the Barro Alto and Codemin ferronickel processing plants, and the Jacaré and Morro Sem Bone development projects. Last year, the miner produced a total of 39,400 tonnes of nickel.
The deal, expected to be completed by the third quarter of this year, is subject to conditions, including customary competition and regulatory clearances.
Source:Kallanish Power Materials
