18th Feb 2025 09:40
(Alliance News) - Anglo American PLC on Tuesday said it struck a deal to sell its nickel business to resources firm MMG Singapore Resources Pte Ltd, a subsidiary of Melbourne, Australia-based MMG Ltd.
The London-based mining major said MMG, which has operations in Australia, Botswana and Peru, will pay USD350 million on completion. There is also a potential price-linked earnout of USD100 million and a contingent consideration of USD50 million hinging on a final investment decision on development projects.
"The nickel business includes two ferronickel operations in Brazil - Barro Alto and Codemin - and two high quality greenfield growth projects - Jacare and Morro Sem Bone," Anglo American said.
Chief Executive Officer Duncan Wanblad added: "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. 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 USD5.3 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. We will work together to ensure a successful transition."
MMG Chief Executive Officer 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. This is a strong business with a talented team, growth potential and demonstrated excellence in sustainability performance and we look forward to continuing this positive legacy. MMG and Anglo American have a long track record of close collaboration and shared values demonstrated through our commitment to ICMM principles. We look forward to working together towards completion."
Anglo American shares were marginally higher at 2,476.62 pence each on Tuesday morning in London. They were down 0.7% at ZAR575.01 each in Johannesburg.
By Tom Budszus, Alliance News slot editor
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