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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
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
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
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
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
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