Anglo American seals R9 billion deal

Anglo American has sold its nickel business to a Singapore-based company for a cash consideration of up to R9.23 billion.

This was done as part of the company’s ongoing restructuring, which will see the mining giant narrow its focus to iron ore and copper.

The latest development, which Anglo American announced to shareholders on Tuesday, 18 February, is the sale of its nickel business to MMG Singapore Resources.

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 ferronickel operations produced 39,400 tonnes of nickel in 2024. Barro Alto is also the only nickel mine in the world certified by the Initiative for Responsible Mining Assurance.

In addition, Jacaré holds around 300 Mt of mineral resources, and Morro Sem Boné holds a total potential mineralisation of 65 Mt.

The agreed cash consideration of up to $500 million (R9.23 billion) comprises the following –

• An upfront cash consideration of $350 million (R6.45 billion) at completion
• The potential for up to $100 million (R1.84 billion) in a price-linked earnout
• A contingent cash consideration of $50 million (R920.96 million) linked to the final investment decision (FID) for the development projects

“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,” Anglo American CEO Duncan Wanblad said.

“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 $5.3 billion (R97.61 billion) of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses.”

“MMG is well-respected as a safe and responsible operator, and we believe our agreement represents a strong outcome not only for our shareholders but also for our employees and Brazilian stakeholders.” 

Wanblad said the sale of this and the company’s other businesses will unlock Anglo America’s inherent value and create a simpler, more resilient and agile business.

MMG CEO Cao Liang said this acquisition will provide the company with important diversification benefits and strengthen its presence in Latin America.