Anglo American confirmed on 18 February that it has entered into an agreement to sell its Brazilian nickel business to MMG subsidiary MMG Singapore for up to US$500 million cash.
The nickel business comprises two ferronickel operations in Brazil, Barro Alto and Codemin, as well as two high quality greenfield growth projects, Jacaré and Morro Sem Boné.
The $500 million potential total comprises an upfront cash consideration of $350 million at completion; the potential for up to $100 million in a price-linked earnout; and contingent cash consideration of $50 million linked to the final investment decision (FID) for the development projects.
Anglo chief executive Duncan Wanblad, who said the sale stemmed from a “highly competitive process” is a milestone in its mission to simplify its 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 $5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses,” he said.
“MMG is well-respected as a safe and responsible operator and we believe our agreement represents a strong outcome not only for our shareholders, but also for our employees and Brazilian stakeholders. We will work together to ensure a successful transition. We are unlocking the inherent value of all of Anglo American as we create a much simpler, more resilient and agile business that will enable full value transparency in the market.”
MMG chief executive Cao Liang said the acquisition, for it, offers “important diversification” for its business and also strengthens its footprint in Latin America.
“MMG and Anglo American have a long track record of close collaboration and shared values demonstrated through our commitment to ICMM principles. We look forward to working together towards completion,” he added.
The operating assets of Barro Alto mine, Niquelândia mine and the Barro Alto and Codemin ferronickel processing plants together produced 39,400 tonnes of nickel in 2024. Additionally, its two high-quality greenfield growth development projects have healthy resources: Jacaré with c.300Mt of mineral resources, and Morro Sem Boné (MSB) with a total potential mineralisation of 65Mt.
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 expected to be completed by the third quarter, subject to a number of conditions, including customary competition and regulatory clearances.
Source: Anglo American