Anglo American has agreed to the sale of its nickel business to MMG Singapore Resources Pte. Ltd, a wholly owned subsidiary of MMG Limited for a cash consideration of up to US$500 million.
The nickel business comprises two ferronickel operations in Brazil – Barro Alto and Codemin – and two high quality greenfield growth projects – Jacaré and Morro Sem Boné.
The agreed cash consideration of up to US$500 million comprises an upfront cash consideration of US$350 million at completion; the potential for up to US$100 million in a price-linked earn out and contingent cash consideration of US$50 million linked to the Final Investment Decision (FID) for the development projects.
Duncan Wanblad, Chief Executive of Anglo American, 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. 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 US$5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses.”
Wanblad said the Anglo American’s portfolio focus, exceptional asset quality and growth options offer a differentiated investment proposition for investors.
“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.”
Cao Liang, Chief Executive of MMG, 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.”
Liang added that Anglo American’s nickel business is well positioned to serve both the stainless steel and battery value chains. The business comprises the operating assets of Barro Alto mine, Niquelândia mine and the Barro Alto and Codemin ferronickel processing plants which together produced 39 400 tonnes of nickel in 2024. – www.jse.co.za
