Anglo American warns Brazil nickel mines could close if EU blocks MMG sale
2026-10-14 11:59:25 [Print]
Anglo American is preparing to warn European Union regulators that its Brazilian nickel operations could ultimately shut down if authorities block their proposed $500 million sale to MMG Ltd., escalating the stakes in an antitrust review increasingly driven by concerns over Europe's access to critical raw materials.
Executives from the British miner are expected to present their case at a closed hearing Thursday before the European Commission, according to prepared remarks obtained by Reuters. The company plans to argue that Hong Kong-listed MMG is the only viable buyer identified for the assets and that rejecting the deal could leave Anglo with few options other than winding down the business.
Ruben Fernandes, Anglo American's chief operating officer in Brazil, is expected to tell regulators that the prolonged review has already generated significant uncertainty around the operation, Reuters reported. If Brussels prohibits the transaction, the company would likely place the assets into care and maintenance-a step that could eventually lead to closure-according to the prepared comments.
MMG has disputed that assessment. In September, the company said the Commission's preliminary objections did not reflect the commercial realities of the ferronickel market. MMG said it has offered measures aimed at preserving European supply and argued that blocking the acquisition could instead reduce investment in Brazil and remove production from the market.
The transaction is part of Anglo American's broader effort to simplify its portfolio and focus on copper and iron ore. Anglo agreed in 2025 to sell its Brazilian nickel business to MMG for cash consideration of as much as $500 million. The assets include the Barro Alto and Codemin operations, which produce ferronickel primarily for stainless and heat-resistant steel production.
Executives from the British miner are expected to present their case at a closed hearing Thursday before the European Commission, according to prepared remarks obtained by Reuters. The company plans to argue that Hong Kong-listed MMG is the only viable buyer identified for the assets and that rejecting the deal could leave Anglo with few options other than winding down the business.
Ruben Fernandes, Anglo American's chief operating officer in Brazil, is expected to tell regulators that the prolonged review has already generated significant uncertainty around the operation, Reuters reported. If Brussels prohibits the transaction, the company would likely place the assets into care and maintenance-a step that could eventually lead to closure-according to the prepared comments.
MMG has disputed that assessment. In September, the company said the Commission's preliminary objections did not reflect the commercial realities of the ferronickel market. MMG said it has offered measures aimed at preserving European supply and argued that blocking the acquisition could instead reduce investment in Brazil and remove production from the market.
The transaction is part of Anglo American's broader effort to simplify its portfolio and focus on copper and iron ore. Anglo agreed in 2025 to sell its Brazilian nickel business to MMG for cash consideration of as much as $500 million. The assets include the Barro Alto and Codemin operations, which produce ferronickel primarily for stainless and heat-resistant steel production.
Nickel Ore Philippine 1.3%min CIF China
Unit:USD/mt
China ferronickel producers' sales volume statistics by province by month
Unit: mt
