Anglo American threatens to close Brazil nickel operations over EU sale block

Anglo American has warned it may close its nickel operations in Brazil if the European Union blocks the sale of its assets to the Chinese mining company MMG. The transaction is valued at up to US$ 500 million.

The European Commission is investigating whether the change in control would divert ferronickel supplies intended for European stainless steel manufacturers to other markets, particularly China. This investigation stems from concerns regarding the bloc's dependence on China for critical minerals.

MMG, which is controlled by the Chinese state-owned enterprise China Minmetals, has criticized the investigation. The company argues that the European Commission has ignored evidence and market analyses that demonstrate the deal would not compromise European supply. MMG executives have characterized the regulator's use of certain documents as misleading.