Anglo American (JO: AGLJ ), a global mining company, announced the sale of its nickel business to MMG Limited for a deal valued at up to $500 million. The transaction includes the transfer of two ferronickel operations and two greenfield projects located in Brazil.

This move aligns with Anglo American's strategy to concentrate on its core businesses of copper , premium iron-ore, and crop nutrients.

Duncan Wanblad, CEO of Anglo American, highlighted that the sale followed a competitive process and ensures benefits for the company's shareholders, employees, and Brazilian stakeholders.

The assets involved in the deal are the Barro Alto and Codemin ferronickel operations, as well as the Jacaré and Morro Sem Bone development projects.

MMG's CEO, Cao Liang, expressed that the acquisition is in line with MMG's diversification strategy and will bolster its presence in Latin America. The nickel operations, including the Barro Alto and Niquelândia mines and their processing plants, produced 39,400 tonnes of nickel in 2024. The Jacaré and Morro Sem Bone projects offer substantial resource potential, with estimated mineral resources of roughly 300 million tonnes and 65 million tonnes, respectively.

Barro Alto stands out as the world's only nickel mine with certification from the Initiative for Responsible Mining Assurance (IRMA), having achieved the IRMA 75 level of assurance in the previous year.

The financial terms of the agreement involve an initial cash payment of $350 million upon completion, with an additional $100 million contingent on a price-linked earnout, and $50 million dependent on a final investment decision for the development projects. The completion of the transaction is contingent on regulatory approvals and customary competition clearances, with an expected closure by the third quarter of 2025.

Wanblad also mentioned that this agreement, along with the agreements signed in November for the sale of Anglo American's steelmaking coal business, is projected to generate up to $5.3 billion in gross cash proceeds.

This reflects the high quality of the group's steelmaking coal and nickel businesses and is a step towards creating a simpler, more resilient, and agile Anglo American.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.