This sale is part of Anglo American’s strategic plan to streamline its business and focus on its core operations in copper, iron ore, and crop nutrients. The deal for its nickel business includes an upfront payment of US$350M, with additional payments of up to US$150M depending on future nickel prices and project developments. Anglo American stated that “The upfront cash consideration is subject to normal completion adjustments, and completion is expected by Q3 2025.”

The transaction covers the operating assets of the Barro Alto mine, the Niquelândia mine, and the Barro Alto and Codemin ferronickel processing plants, which together, produced 39.4kt Ni in 2024. It also includes two greenfield development projects: Jacaré with c.300Mt of mineral resources, and Morro Sem Boné with a total potential mineralisation of 65Mt.

The Codemin ferronickel plant has been operational since 1978, while the Niquelândia mine began surface mining activities in 1982. Nickel ore mining at the Barro Alto site started in 2004, with initial processing conducted at the Codemin plant before the Barro Alto processing plant was commissioned in 2011.

This divestment follows Anglo American’s recent sale of its steelmaking coal assets and, the planned spin-off of its platinum business, which is expected to be completed by June. Additionally, relating to Anglo American’s attractive Latin American copper mining assets, the company is now likely to receive another acquisition bid from mining rival, BHP, by the end of the year, after rejecting earlier offers in May 2024. Since then, Anglo American has accelerated its portfolio simplification efforts, though this may attract interest from other potential suitors waiting in the wings.

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