Posted on 20 Feb 2025
London-listed miner Anglo American plc (Anglo American) has agreed to sell its nickel business in Brazil to MMG Singapore Resources Pte. Ltd, a wholly owned subsidiary of China's Hong Kong-listed MMG Limited (MMG), for up to $500 million in cash, according to the two parties' statement released on February 18. Though Melbourne headquartered, MMG's major shareholder is Beijing-based China Minmetals Corp, the state-owned metals and mineral giant, Mysteel Global notes.
The sale comprises Anglo's two ferronickel operations in Brazil (Nickel Brazil), "a world class and stable operation," MMG said in a statement, producing up to 40,000 tonnes/year of nickel in ferronickel across two operating assets, Barro Alto and Codemin (Niquelândia) in the Brazilian Midwest, and two high quality greenfield growth projects, Jacaré and Morro Sem Boné.
The Barro Alto and Codemin ferronickel processing plants together produced 39,400 tonnes of nickel contained in 2024, Anglo said.
Though subject to a number of conditions, including regulatory clearances, the parties hope the deal will be concluded by Q3 this year.
"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 Anglo CEO Duncan Wanblad in Tuesday's release.
"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," he added.
In late November 2024, Anglo had sold its met coal business to Peabody Energy, a New York-listed leading coal producer, for up to $4.9 billion, as Mysteel Global reported. This deal is also expected to be closed by Q3 this year.
MMG saw Tuesday's transaction as part of its growth strategy to expand earnings, geographical footprint, and exposure to base metals. It marks MMG's first investment in Brazil and adds an operating primary nickel mine to its portfolio.
"We are excited to reach agreement to acquire Anglo American's nickel business, which provides important diversification for our business and strengthens our presence in Latin America," said Liang Cao, MMG's CEO. "MMG and Anglo American have a long track record of close collaboration ... and we look forward to working together towards completion," he said in a statement.
In late April 2024, MMG finalized the acquisition of the Khoemacau mine, a long-life copper silver mine located in the Kalahari Copper Belt in Botswana, one of the most prospective mining regions in Africa. Khoemacau's production is around 43,000-53,000 t/y of copper in copper concentrate, the company says.
MMG is a mid-tier, global producer of base metals including copper and zinc, operating across Australia, Botswana, Congo and Peru. About 68% of MMG's shares are owned by China Minmetals H.K. (Holdings) Limited, a subsidiary of the state-owned mining-to-trading giant China Minmetals Corp, while the remaining 32% is owned by public shareholders including global resources and investment funds, MMG says.
Source:Mysteel Global
