Anglo American PLC has announced the US$500 million (£396 million) sale of its nickel business as the miner continues to shift focus to copper and iron ore.
MMG Singapore Resources, a subsidiary of Hong Kong’s MMG Ltd, would buy the unit, which operates two ferronickel operations in Brazil, for US$350 million upfront, Anglo said.
A further US$100 million would be price-linked, with the remaining US$50 million contingent on final investment decisions for the businesses’ two development projects.
“The sale [...] marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business,” chief executive Duncan Wanblad commented.
Combined with a November agreement to sell its steelmaking coal business, Wanbald flagged Anglo was set to receive US$5.3 billion from the disposals.
“We are unlocking the inherent value of all of Anglo American as we create a much simpler, more resilient and agile business that will enable full value transparency in the market,” he added.