Anglo American Sells Nickel Business to China’s MMG for $500 Million

In a significant move within the global mining industry, Anglo American has agreed to sell its nickel business to Chinese-owned MMG Limited for a total value of $500 million. The deal, announced on March 5, 2025, is part of Anglo American’s broader strategy to streamline its portfolio and focus on high-value commodities. The transaction includes key nickel operations in Brazil and two promising development projects, marking MMG’s expansion into the global nickel market.

Details of the Deal The agreement between Anglo American and MMG Limited covers the transfer of Anglo’s nickel assets, including:

• Two operational ferronickel plants in Brazil, which have been key contributors to the company’s nickel output.
• Two major nickel development projects, which were previously considered integral to Anglo’s long-term growth strategy but are now being divested as part of its portfolio optimization.
• A potential additional payout based on future nickel prices, which could increase the total transaction value beyond the initial $500 million.

The deal is expected to be finalized in the second half of 2025, pending regulatory approvals from Brazilian and Chinese authorities.

Strategic Reasons Behind the Sale Anglo American’s decision to exit the nickel market comes amid shifting priorities within the company. The key factors driving this sale include:

1. Focus on Core Commodities: Anglo American is redirecting its investments toward higher-margin businesses such as copper, iron ore, and premium-quality diamonds.
2. Nickel Market Volatility: The nickel market has faced increasing supply from Indonesia, leading to fluctuating prices and squeezing profit margins for producers worldwide.
3. Optimizing Asset Portfolio: The company is streamlining its operations to reduce costs and improve returns for shareholders.
4. China’s Expanding Role in Nickel: The growing demand for nickel in electric vehicle (EV) batteries has prompted Chinese firms to seek greater control over supply sources.

Impact on MMG and the Global Nickel Market MMG Limited’s acquisition of Anglo American’s nickel assets aligns with China’s broader strategy of securing essential resources for its booming EV industry. The key implications of the deal include:

• Expansion of MMG’s Portfolio: MMG, a subsidiary of China Minmetals Corporation, will enhance its presence in the global nickel market, complementing its existing base metal operations.
• Increased Chinese Influence: As China continues to dominate battery production for EVs, securing nickel supplies from Brazil ensures a steady flow of critical raw materials.
• Market Reaction: The deal has already impacted nickel prices, with market analysts predicting tighter competition among global producers and potential consolidation in the sector.

Regulatory and Industry Reactions The sale has sparked discussions within industry circles and regulatory bodies, particularly concerning the growing dominance of Chinese firms in critical mineral supply chains. While the Brazilian government has not opposed the transaction, regulators are expected to scrutinize the deal to ensure compliance with foreign investment and environmental regulations. Meanwhile, global mining competitors will likely monitor MMG’s growing influence in the nickel market closely.