Anglo American plc has entered right into a definitive settlement to promote its nickel enterprise to MMG Singapore Sources Pte. Ltd, a wholly-owned subsidiary of MMG Restricted for a money consideration of as much as $500 million.
The nickel enterprise includes two ferronickel operations in Brazil – Barro Alto (pictured) and Codemin – and two greenfield progress tasks – Jacaré and Morro Sem Boné.
The agreed money consideration of as much as $500 million includes an upfront money consideration of $350 million at completion; the potential for as much as $100 million in a price-linked earnout; and contingent money consideration of $50 million linked to the Closing Funding Choice for the event tasks.
Duncan Wanblad, Chief Govt of Anglo American, stated: “The sale of our nickel enterprise after a extremely aggressive course of marks an extra necessary milestone in direction of simplifying our portfolio to create a extra extremely valued copper, premium iron ore and crop vitamins enterprise. In the present day’s settlement, along with these signed in November 2024 to promote our steelmaking coal enterprise, is predicted to generate a complete of as much as $5.3 billion of gross money proceeds, reflecting the top quality of our steelmaking coal and nickel companies. MMG is well-respected as a secure and accountable operator and we consider our settlement represents a robust end result not just for our shareholders, but additionally for our workers and Brazilian stakeholders. We are going to work collectively to make sure a profitable transition
“Anglo American’s portfolio focus, distinctive asset high quality and progress choices supply a differentiated funding proposition for buyers. We’re unlocking the inherent worth of all of Anglo American as we create a a lot less complicated, extra resilient and agile enterprise that can allow full worth transparency out there.
Cao Liang, Chief Govt of MMG, stated: “We’re excited by our acquisition of Anglo American’s nickel enterprise which gives necessary diversification for our enterprise and strengthens our presence in Latin America. This can be a sturdy enterprise with a proficient group, progress potential and demonstrated excellence in sustainability efficiency and we stay up for persevering with this constructive legacy. MMG and Anglo American have a protracted monitor document of shut collaboration and shared values demonstrated via our dedication to ICMM rules. We stay up for working collectively in direction of completion.”
Anglo American’s nickel enterprise is nicely positioned to serve each the chrome steel and battery worth chains. The enterprise includes the working belongings of Barro Alto mine, Niquelândia mine and the Barro Alto and Codemin ferronickel processing crops which collectively produced 39,400 t of nickel in 2024; and two high-quality greenfield progress growth tasks: Jacaré with c.300 Mt of mineral assets, and Morro Sem Boné (MSB) with a complete potential mineralisation of 65 Mt. Barro Alto is the one nickel mine on the planet licensed by the Initiative for Accountable Mining Assurance, having achieved the IRMA 75 degree of assurance in 2024.
The transaction is topic to various situations, together with customary competitors and regulatory clearances. The upfront money consideration is topic to regular completion changes and completion is predicted by the September quarter of 2025.
