Anglo American to Sell Brazilian Nickel Assets to MMG for Up to $500 Million

Anglo American

Strategic sale aligns Anglo’s focus on copper, iron ore, and crop nutrients amid nickel market shifts

Anglo American, the UK-South African mining major, has agreed to sell its Brazilian nickel business to MMG, a subsidiary of China’s Minmetals, for up to $500 million. The deal will streamline Anglo’s portfolio as it pivots toward copper, iron ore, and crop nutrients—sectors with stronger long-term demand.

The transaction includes an upfront $350 million cash payment, a $100 million price-linked earnout, and an additional $50 million contingent payment tied to development projects. MMG’s acquisition will be executed through its Singapore Resources arm, and the deal is expected to close by September 2025.

Brazilian ferronickel assets and greenfield projects included

The sale covers several key nickel operations in Brazil: the Barro Alto and Codemin ferronickel plants, as well as the Jacaré and Morro Sem Boné greenfield development projects. These assets provide MMG with direct access to high-grade nickel resources amid growing demand from battery and stainless steel industries.

In 2024, Anglo produced 39,400 tonnes of nickel (metal equivalent), down 1.5% year-on-year. It projects 2025 output between 37,000 and 39,000 tonnes. The sale will help Anglo prioritize high-margin projects in metals crucial to the global energy transition.

MMG expands presence as Brazil nickel exports to China fall

MMG, backed by state-owned China Minmetals Corporation, continues to secure upstream assets worldwide as China strengthens its control over energy transition metals. Despite the decline in Brazil's 2024 ferronickel exports to China—40,048 tonnes, down 36.3% from 2023—MMG’s acquisition signals confidence in long-term nickel demand.

Indonesia’s rise in nickel pig iron (NPI) output has pressured Brazilian exports, especially in the stainless steel sector. Meanwhile, Brazilian mining giant Vale is also reviewing its nickel portfolio, possibly considering divestment to sharpen competitiveness in its vertically integrated business model.

This transaction highlights shifting dynamics in global nickel supply as miners recalibrate for market volatility and the EV-driven demand surge.