Anglo American Plc’s top executive in Brazil has announced that the company expects to sell its nickel assets in the country within the first half of 2025. This move is part of a significant restructuring following an unsolicited $49 billion takeover bid from rival BHP Group last year.
The Barro Alto and Niquelândia mines, located in the Brazilian Midwest, have garnered interest from bidders of various nationalities and backgrounds, according to Ana Sanches, Anglo’s CEO in Brazil. In an interview on Wednesday, Sanches stated that negotiations are taking place in London, with Standard Chartered Plc serving as the company’s financial adviser. Additionally, consultancy firm KPMG is involved in the process.
“We already have a number of companies closer to the final stages of negotiation. We’re expecting a conclusion in the next few months,” Sanches said. The company has not disclosed its plans for the assets should the sale fall through.
A report published on November 26 by Berenberg equity research valued the nickel mines at a net asset value of $331 million. However, analysts have expressed concerns about securing a favorable deal amid weak nickel prices.
As part of its restructuring, Anglo plans to prioritize copper while retaining its iron ore and fertilizer assets. The company is exiting the diamond, platinum, nickel, and coal mining sectors.
In Brazil, Anglo will continue investing in the expansive Minas-Rio project, which produced 24.5 million tons of iron ore in 2024. This output represents over 90% of the mine’s current capacity. Despite falling iron ore prices, largely due to China’s economic slowdown and increased supply from major producers, Sanches expects production levels to remain steady in 2025.
In December, rival mining giant Vale SA acquired a 15% stake in Minas-Rio. The deal will integrate the mine with Vale’s adjacent Serpentina project, and the Brazilian miner holds an option to purchase an additional 15% should the mine's capacity be expanded in the future. Starting April 1, Vale will begin receiving its proportional share of Minas-Rio’s production, according to an Anglo spokesperson.
The partnership aims to potentially double the high-quality ore output, adding between 25 million to 30 million tons annually. A final investment decision will be made following feasibility studies, which are expected to be completed within five years. Anglo has allocated $2 billion (12 billion reais) in investments for Minas-Rio from 2024 through 2028.
Sanches highlighted that Minas-Rio has a “promising future” within Anglo’s more streamlined portfolio, which is now focused on commodities essential to the energy transition. The company is banking on increasing demand for high-grade iron ore to produce low-emission steel.
Minas-Rio comprises a mine in Minas Gerais state, a processing plant, a 328-mile (529-kilometer) slurry pipeline, and a port facility in Rio de Janeiro state. Anglo acquired the project from fallen mogul Eike Batista and spent $14 billion to bring it to production, significantly exceeding original budget estimates.
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