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Key Points
- Anglo-American is divesting its nickel assets, including Barro Alto and Codemin, in a $500 million deal to sharpen its focus on high-growth commodities like copper.
- The deal includes a $350 million upfront payment, with an additional $150 million tied to future nickel prices and project development milestones.
- CEO Duncan Wanblad frames the sale as part of Anglo American’s broader strategy to simplify its operations and prioritize commodities with long-term growth potential.
Anglo-American, a diversified global mining giant led by South African businessman Duncan Wanblad, announced that it has entered into a definitive agreement to sell its nickel business, which includes two ferronickel operations in Brazil – Barro Alto and Codemin – and two high-quality greenfield growth projects – Jacaré and Morro Sem Boné for up to $500 million.
The deal is part of the company’s broader strategy to streamline its portfolio and focus on high-growth commodities like copper and iron ore.
Anglo-American offloads Nickel assets in $500 million deal
The definitive agreement will transfer Anglo American’s nickel business—including Brazil’s Barro Alto and Codemin ferronickel operations, along with two greenfield projects, Jacaré and Morro Sem Boné—to MMG Singapore Resources (MMG Singapore), a subsidiary of MMG Limited.
Under the terms of the transaction, MMG Singapore will make an upfront cash payment of $350 million, with an additional $100 million tied to future nickel prices and a contingent $50 million linked to a Final Investment Decision (FID) for the development projects.
Duncan Wanblad, CEO of Anglo American, framed the sale as a step toward a “simpler, more resilient” company. “The sale of our nickel business after a highly competitive process marks an important milestone in streamlining our portfolio,” he said. “Today’s agreement, along with our earlier steelmaking coal sale, is expected to generate up to $5.3 billion in gross cash proceeds.” He also emphasized MMG’s reputation as a responsible operator, reassuring stakeholders about the transition.
Anglo-American optimizes portfolio
Founded in 1917 by Ernest Oppenheimer, Anglo-American is one of the world’s largest producers of platinum, diamonds, copper, nickel, iron ore, polyhalite, and steelmaking coal. The company operates across Africa, Asia, Australia, Europe, and the Americas.
Since taking over as CEO in April 2022, Wanblad has driven a major restructuring effort to position Anglo-American for long-term value creation. The nickel divestment marks a significant step in this strategy, allowing the company to simplify operations, enhance agility, and concentrate resources on commodities with stronger growth potential.
While the sale aligns with Anglo American’s efforts to streamline its portfolio, it also raises questions about the company’s long-term exposure to battery metals, which are increasingly critical in the global energy transition. Whether this move strengthens Anglo American’s position or reflects a missed opportunity in the evolving mining landscape remains to be seen.
