Anglo American has agreed to divest its nickel business to MMG Singapore Resources, a wholly owned subsidiary of MMG, for a cash consideration of up to $500m.
The definitive agreement includes an upfront payment of $350m, a price-linked earnout of up to $100m, and a contingent payment of $50m tied to the final investment decision (FID) for two development projects.
MMG CEO 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.”
The transaction covers Anglo American’s nickel operations in Brazil, comprising the Barro Alto and Codemin ferronickel processing plants, along with the Barro Alto and Niquelândia mines.
The company’s nickel business, which produced 39,400 tonnes of nickel in 2024, also includes two greenfield development projects, namely the Jacaré mine and the Morro Sem Boné (MSB) mine.
The Jacaré mine has approximately 300 million tonnes of mineral resources while the MSB mine has a total potential mineralisation of 65 million tonnes.
The Barro Alto is said to be the only nickel mine globally certified by the initiative for responsible mining assurance, having achieved IRMA 75 level assurance in 2024.
The sale is part of Anglo American’s broader strategy to divest non-core assets and focus on copper and iron ore mining.
Anglo American CEO Duncan Wanblad said: “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.”
Subject to customary and regulatory approvals, the transaction is expected to be completed by the third quarter of 2025.
The latest deal follows Anglo American’s recent divestment of its 33.3% minority stake in Jellinbah Group, a joint venture (JV) holding a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines in Australia.
The stake was sold to Zashvin for A$1.6bn. Anglo American did not operate or market production from these mines before the sale.
