EU Ferronickel Raw Mat Supply Concerns Slow MMG Deal

Hong Kong-based mining company MMG has strongly rebutted the basis upon which the European Commission was raising formal concerns about its proposed acquisition of Anglo American’s Brazilian nickel assets.

“Blocking this acquisition would create a lose-lose outcome for all stakeholders,” said Troy Hey, Executive General Manager Corporate Relations. “Rather than strengthening competition, it threatens to limit investment and jobs in Brazil and remove supply from the market.”

The Commission's preliminary concerns do not reflect the facts, the commercial realities of the ferronickel market or MMG's longstanding track record as a reliable supplier to international customers, an MMG spokesman told Mining Digital. 

The European Commission’s concerns relate to fears that the sale of the nickel producing assets to MMG, a wholly owned subsidiary of China’s state-owned Minmetals, could lead to a potential reduction in market supply.

However, MMG noted ferronickel is not classified by the European Commission as a strategic raw material and is traded globally based on commercial demand. MMG currently has no ferronickel production or market share. 

The preliminary assessment noted the market for low-carbon ferronickel is highly concentrated and that European buyers have limited alternative sources of supply.

However, MMG noted ferronickel is not classified by the European Commission as a strategic raw material and is traded globally based on commercial demand. MMG currently has no ferronickel production or market share. 

The preliminary assessment noted the market for low-carbon ferronickel is highly concentrated and that European buyers have limited alternative sources of supply. The acquisition would introduce a new competitor into the ferronickel market while preserving continuity of supply through the transfer of Anglo American's European marketing function and existing customer contracts.  

The assessment suggested that MMG might be able to redirect some of the Brazilian operation’s ferronickel supply towards affiliated stainless-steel producers in East Asia and away from European customers. If this were to occur, the resultant supply squeeze could well increase prices and raise production costs for European stainless steel manufacturers.

MMG responded by noting that Nickel Brazil would continue to operate as a standalone business supported by its experienced local management team, with MMG intending to invest in the operation and assess future development opportunities. MMG concluded it has supplied customers globally on a commercial basis for more than 16 years, marketing its products according to commercial demand. 

The European Commission published a Statement of Objections, which is a preliminary step in the EU’s merger investigation. The European Commission has until 30 November 2026 to reach a final decision. 

Brazilian nickel sale

The sale of Anglo American’s Brazilian nickel assets for US$500m to a Singapore-based subsidiary of MMG was originally announced in February 2025 and was originally expected to be concluded by late 2025. 

The deal included the Barro Alto and Codemin nickel operations in Brazil, as well as two nickel development projects. The operations currently produce around 40,000t per year of ferronickel. 

The sale price included a US$50 million consideration linked to a Final Investment Decision (FID) on the development projects.

Meet the partners

MMG is a multinational metals and mining company engaged in the exploration, development and production of base metals, primarily copper and zinc. Headquartered in Melbourne, Australia, MMG operates mining assets across Australia, Botswana, Democratic Republic of Congo and Peru. The company is listed on the Hong Kong Stock Exchange and is majority-owned by China Minmetals, a state-owned enterprise under the control of the SASAC of the Chinese State Council. SASAC also controls several stainless steel producers.

China Minmetals Corporation is an international metals and mining corporation. It primarily engages in exploration, mining, smelting, processing and trading for metals and minerals. It employs 183,600 employees and controls nine listed companies at home and abroad. In 2025, China Minmetals achieved operating revenue of US$104.1bn and total profit of US$250m, ranking No. 99 among the Fortune Global 500.

Nickel Brazil comprises Anglo American's Brazilian operations producing nickel, including for the European markets. Its principal asset, the Barro Alto operations in the state of Goiás, is a fully integrated open-pit mine with smelting and refining facilities that produce low-carbon ferronickel primarily used in stainless steel manufacturing. The business also includes another operating site, the Codemin operations, as well as two greenfield nickel projects located in Jacaré and Morro Sem Boné.