Anglo American Warns Brazilian Nickel Business Could Close
Anglo American has warned that it may be forced to close its Brazilian nickel operation if European Union competition authorities reject its proposed US$500 million sale to Hong Kong-listed mining group MMG. The warning is expected to be delivered by senior executives during a closed-door hearing with European Commission officials on Thursday, according to prepared remarks reviewed by Reuters.
Anglo American Brazil chief operating officer Ruben Fernandes and the company’s Brazilian chief financial officer, Cristina Morgan, are expected to defend the transaction, arguing that the proposed acquisition would not undermine the interests of European stainless steel manufacturers.
The European Commission, which oversees competition policy across the bloc, raised concerns last month that MMG could redirect nickel supplies away from European customers following the acquisition. The case comes as the EU seeks to reduce its dependence on China and strengthen the security of its critical mineral supply chains.
Fernandes is expected to tell regulators that the extended review process has already created significant uncertainty for the operation and its local stakeholders. He will warn that rejecting the transaction could have serious consequences for the future of the business.
According to his prepared comments, Anglo American has been seeking to exit its nickel operations for more than two years and regards MMG as the only credible purchaser identified during the sale process. If the European Commission blocks the acquisition, the company would have little alternative but to place the Brazilian operation into care and maintenance as a step towards eventual closure.
Such an outcome would raise concerns about the future of the operation’s workforce and regional economic activity, while potentially removing an additional source of nickel from the international market. Fernandes is nevertheless expected to stress that a workable solution could be negotiated to address the Commission’s concerns without preventing the sale from proceeding.
Morgan will reinforce Anglo American’s position by highlighting the due diligence undertaken when selecting MMG as the preferred buyer. She is expected to explain that the assessment considered bidders’ operational expertise, responsible mining practices, ability to develop future projects, plans for employees, financial capacity and the price offered for the business.
She will also point to MMG’s membership of the International Council on Mining and Metals (ICMM), an industry organisation focused on improving responsible mining practices. According to Morgan’s prepared remarks, Anglo American knows MMG as an established industry participant with a credible operating record and the ability to deliver value from the investment.
MMG representatives will also have an opportunity to present their case. Troy Hey, the company’s executive general manager of corporate relations, is expected to attend the hearing and explain the benefits of the proposed acquisition to senior European Commission officials and legal representatives.
The dispute highlights the growing tension between competition regulation and Europe’s efforts to secure reliable supplies of critical minerals. While regulators are concerned that a change in ownership could affect the availability of nickel for European manufacturers, Anglo American argues that blocking the transaction could instead lead to the closure of an existing operation.
The outcome will therefore have implications beyond the immediate transaction, potentially affecting Brazilian nickel production, European stainless steel supply chains and the broader debate over how the EU balances competition concerns with its strategic mineral requirements.
