Anglo American has entered into a definitive agreement to sell its nickel business to MMG Singapore Resources, a wholly owned subsidiary of MMG for a cash consideration of up to $500 million.
The group’s nickel business consists of two ferronickel operations in Brazil - Barro Alto and Codemin - and two high-quality greenfield growth projects, Jacaré and Morro Sem Boné.
It said the agreement comprises an upfront cash consideration of $350 million at completion; the potential for up to $100 million in a price-linked earnout; and a contingent cash consideration of $50 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,” said Anglo American chief executive Duncan Wanblad.
“Today's agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate up to $5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
