Anglo American's Strategic Exit: Sells Brazilian Nickel Operations to China's MMG

Anglo American has sold its Brazilian nickel business to China's MMG Ltd, allowing Anglo to fulfill its strategy of portfolio simplification and deliver value to shareholders by generating up to $500 million. MMG diversifies by entering the nickel market through a strategic expansion into Brazil. This move is part of China’s broader strategy to dominate the nickel supply chain, as Chinese firms already control 75% of nickel refining capacity in Indonesia. As Western producers like Vale’s Canadian operations and South32 in Colombia look to offload nickel assets due to continual low prices, China’s hold on the market could tighten further. Despite a collapse in nickel prices, driven by Indonesian and Chinese output, Anglo’s Brazilian operations remain viable due to their low cost and high sustainability standards, critical under Europe's new carbon regulations. The long-term bet is on increasing demand from the stainless steel and electric vehicle sectors, which could lead MMG to reconfigure the Brazilian assets toward battery metal production.