British mining giant Anglo American is preparing to warn European Union antitrust regulators that it will likely close its Brazilian nickel operations if its proposed $500 million sale to Hong Kong-listed MMG is blocked, Reuters reported.
According to prepared remarks obtained ahead of a closed hearing with European Commission officials, Anglo American Brazil Chief Operating Officer Ruben Fernandes will inform regulators that the company sees no viable alternative. Having committed to exiting its nickel business over two years ago, Anglo American considers MMG the only credible buyer identified during its sales process. If regulators prohibit the transaction, the mining firm plans to place the Brazilian facilities into “care and maintenance” as an initial step toward permanent closure.
The regulatory standoff stems from concerns raised by Brussels last month that MMG, backed by state-owned China Minmetals, could divert nickel supplies away from Europe, potentially harming the region’s stainless steel manufacturers. The scrutiny reflects heightened EU sensitivity surrounding dependency on Chinese entities for critical raw materials.
Executives from both companies intend to defend the transaction at the hearing. Cristina Morgan, Chief Financial Officer for Anglo American in Brazil, noted that MMG underwent a rigorous selection process evaluating its operational capability, financial backing, and commitment to responsible stewardship as a member of the International Council on Mining and Metals. Troy Hey, MMG’s executive general manager of corporate relations, will also present arguments emphasizing that a practical solution can satisfy European market concerns while preserving the asset’s operational continuity.