Anglo American has entered a definitive agreement with MMG Singapore Resources, a wholly owned subsidiary of MMG, to divest its Nickel Brazil business for a cash consideration of up to $500m.
Nickel Brazil operates two ferronickel operations in the country, including Barro Alto and Codemin (Niquelândia), which produced approximately 40,000tpa of nickel in ferronickel in 2024.
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The business also comprises two greenfield development projects, including Jacaré, which has approximately 300 million tonnes (mt) of mineral resources; and Morro Sem Boné, which has a potential 65mt.
Notably, Barro Alto has the distinction of being the only nickel mine worldwide to have received certification from the Initiative for Responsible Mining Assurance, achieving the IRMA 75 level of assurance in 2024.
The agreement includes an upfront payment of $350m at completion, with an additional $100m tied to future nickel prices and a $50m contingent on achieving final investment decision (FID) at the development projects.
The sale of the nickel business, along with the divestiture of the steelmaking coal division in November 2024, is anticipated to bring Anglo American gross cash proceeds to up to $5.3bn.
Anglo American chief executive Duncan Wanblad said: “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.”
The transaction supports MMG’s growth strategy by increasing earnings, expanding its global presence, and enhancing base metal exposure.
It marks MMG’s first investment in Brazil and adds an operational primary nickel mine to its portfolio.
MMG chairman Jiqing Xu said: “This acquisition is a great example of our growth strategy in action, as we expand our geographical footprint and diversify MMG’s metals portfolio. Already a strong performing business, there is considerable upside given its stable operational track record.”
Completion of the sale is expected by the third quarter of 2025, subject to customary regulatory approvals.
MMG chief executive Cao Liang said: “We are excited by our acquisition of Anglo American’s nickel business which provides important diversification for our business and strengthens our presence in Latin America.
“This is a strong business with a talented team, growth potential and demonstrated excellence in sustainability performance and we look forward to continuing this positive legacy. 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.”
Recently, MMG also acquired Khoemacau, an operating mine in Botswana’s Kalahari Copper Belt in Africa.
