Anglo American warns of Brazil nickel closure over EU review

Anglo American will likely shut down its nickel operations in Brazil if European Union antitrust regulators block the sale of the business to Hong Kong-listed MMG. The mining group plans to deliver this warning to regulators during a closed hearing on Thursday, October 8, according to prepared remarks seen by Reuters.

Ruben Fernandes, chief operating officer of Anglo American Brazil, and Cristina Morgan, chief financial officer of the business in Brazil, will attempt to persuade the European Commission that the $500 million deal will not harm European stainless steel manufacturers. Last month, the EU antitrust regulator warned that MMG could redirect supply away from Europe amid broader EU concerns over reliance on China for critical minerals.

According to the prepared text, Fernandes will argue that MMG is the only credible buyer identified after Anglo American decided more than two years ago to exit the nickel business. If the Commission prohibits the transaction, the company will have few options other than moving the assets into care and maintenance toward an eventual closure.

Morgan will highlight MMG's credentials as a reliable buyer that will continue supplying European clients. Troy Hey, executive general manager of corporate affairs at MMG, will also attend the hearing alongside senior Commission officials and lawyers to defend the merits of the acquisition.