Anglo American sells nickel business for up to | World Mining

Anglo American sells nickel business for up to – World Mining News

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.

Anglo American has bought its nickel business for up to $500mn in money as it really works to restructure itself radically after rebuffing rival BHP’s £39bn takeover attempt last 12 months.

Anglo mentioned on Tuesday that it had agreed to sell its nickel property, positioned in Brazil, to MMG Singapore Resources, half of China-backed MMG.

It comes a day after the London-listed miner mentioned it could get a $600mn dividend increase forward of the spin-off of its platinum arm. Anglo American Platinum, the world’s largest platinum company, is to listing in London after June and in addition stay on the Johannesburg Stock Exchange.

Shares in Anglo, which have risen 40 per cent over the previous 12 months, rose 0.4 per cent in early trading in London.

Tuesday’s deal is an element of Anglo’s radical plan to concentrate on its copper and iron companies and offload a vary of different items, together with its diamonds and platinum arms.

Carmakers need nickel for lithium-ion batteries, whereas the metallic can be utilized in smartphones and chrome steel.

The nickel industry has been rocked lately by a 2022 short squeeze and the fast ascent of miners in Indonesia which have dramatically reshaped the market. Prices have slumped from a file high in 2022, when nickel briefly rose above $100,000 a tonne earlier than falling back to $16,000 a tonne.

Anglo last 12 months booked an $800mn writedown of its Barro Alto nickel mine in Brazil thanks to falling nickel costs, which have additionally pushed different operators to close or search to sell their mines.

Many of the nickel operators in Indonesia are Chinese, with analysts warning that their cheaper value of producing the metallic had made it difficult for western miners to compete.

Anglo chief government Duncan Wanblad mentioned Tuesday’s deal “marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business”.

Cao Liang, chief government of MMG, mentioned the Brazilian property had been an “important diversification for our business”. MMG’s largest shareholder is state-owned company China Minmetals.

Anglo mentioned the deal for up to $500mn was comprised of an upfront $350mn in money, the potential for up to $100mn in semi-annual funds over 4 years linked to gross sales above an agreed nickel price and a additional $50mn linked to last investment choices on initiatives in development.

Standard Chartered was an adviser to Anglo and BMO acted for MMG.

Additional reporting by Harry Dempsey in Tokyo

…

News reference

Stay forward of the curve with the newest information in Mining and Minerals. Our web site is your final vacation spot for the best critical mining information.