London: Mining group Anglo American announced on Tuesday the sale of its nickel business to Chinese group MMG Limited for up to $500 million, as part of its wider restructuring plans.
The deal comes as the company has shifted focus to its higher value businesses, like copper and iron, after rejecting a $49 billion takeover offer from mining rival BHP.
Nickel, used in stainless steel and electric vehicle batteries, is Anglo American's latest market to be sold off, with the company also offloading its coal, diamond and platinum businesses.
"The sale of our nickel business after a highly competitive process marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business," Duncan Wanblad, chief executive of London-listed Anglo American said in a statement.
The group's nickel business includes two ferronickel and two greenfield projects in Brazil, which will be taken over by MMG, whose largest shareholder is a Chinese state-owned company.
Nickel prices have plummeted in recent years following rapid growth in Indonesia, where Chinese companies have ploughed money into the sector, making the market more competitive.
"Today's agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate a total of up to $5.3 billion," Wanblad said.
In November, Anglo American sold off its remaining Australian coal mines for steelmaking to US group Peabody Energy for up to $3.8 billion.
The latest deal is expected to close in the third quarter of 2025, subject to regulatory approval.
