Anglo American Plc is planning to sell its nickel assets in Brazil during the first half of 2025 as part of a major restructuring effort. The company's CEO in Brazil, Ana Sanches, revealed that negotiations are in progress with interested bidders from various countries.
Anglo American Plc’s top executive in Brazil anticipates selling the company’s nickel assets in the country during the first half of 2025. This move is part of a substantial restructuring initiative triggered by an unsolicited $49 billion takeover bid from rival BHP Group last year.
Barro Alto and Niquelandia mines, located in Brazil’s Midwest, have attracted interest from bidders of “diverse nationalities and backgrounds,” according to Ana Sanches, Anglo’s chief executive officer in Brazil, in an interview on Wednesday. Negotiations are underway in London, with Standard Chartered Plc serving as the company’s financial advisor. Consultancy firm KPMG is also involved in the process. \“We have already identified several companies nearing the final stages of negotiation. We anticipate a resolution within the next few months,” Sanches stated. The company has refrained from disclosing its plans for the assets if the sale does not materialize. In a November 26 report, Berenberg equity research estimated a net asset value of $331 million for the mines. However, “obtaining a favorable price will likely be challenging, considering the current weakness in nickel prices,” the bank analysts wrote in their note. Anglo American plans to concentrate on copper mining while retaining iron ore and fertilizer assets in its portfolio. The company is exiting diamond, platinum, nickel, and coal mining operations. In Brazil, Anglo will continue investing in the substantial Minas-Rio project. This mine produced 24.5 million tons of iron ore in 2024, according to Sanches. This output represents more than 90% of the mine’s current capacity. The expectation is to maintain this production pace in 2025 despite the depressed prices. Iron ore prices declined by over 25% in 2024 due to China’s economic slowdown and increased supplies from major mining companies. \Rival miner Vale SA acquired 15% of Minas-Rio in December. The mine will integrate Vale’s adjacent Serpentina project, with the Brazilian firm holding an option to purchase another 15% if there is a future capacity expansion. Starting April 1, Vale will receive its proportionate share of Minas-Rio’s production, an Anglo spokesperson confirmed. The new partners envision the potential to double high-quality ore capacity, adding 25 to 30 million tons per year. An investment decision is anticipated following feasibility studies, which are expected to be completed within five years. Anglo has planned investments of $2 billion (12 billion reais) in Minas-Rio from 2024 through 2028. Sanches asserted that Minas-Rio has a “promising future” within Anglo’s streamlined portfolio focused on commodities directly related to the energy transition. The company is wagering on increased demand for high-grade iron ore, which is essential for producing steel with fewer emissions. Minas-Rio encompasses a mine in Minas Gerais state, a processing facility, a 328-mile (529-kilometer) slurry pipeline, and a port in Rio de Janeiro state. Anglo acquired the project from fallen tycoon Eike Batista and spent $14 billion to bring it into production, significantly exceeding the initial budgets.
ANGLO AMERICAN BRAZIL NICKEL ASSETS SALE RESTRUCTURING BHP GROUP MINAS RIO PROJECT IRON ORE ENERGY TRANSITION VALESA
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