By Brazil Stock Guide – The Brazilian antitrust authority, CADE (Administrative Council for Economic Defense), has launched an investigation into the sale of Anglo American’s nickel operations in Brazil to MMG Limited, an Australian mining company controlled by China’s state-owned China Minmetals Corporation (CMI). The deal, which could be worth up to $500 million, is under scrutiny for potential impacts on market competition, according to a report by Istoé Dinheiro.
The transaction involves Anglo American’s nickel assets in Goiás, including the Barro Alto and Codemin mines, and two undeveloped projects in the Pará and Mato Grosso regions. The sale has raised alarms in the U.S., where the American Iron and Steel Institute (AISI) has expressed concerns about China’s growing influence over global nickel supply. The AISI warned that if the deal goes through, China could gain significant control over Brazil’s substantial nickel reserves, further consolidating its dominance in the Indonesian nickel market, which could disrupt global supply chains.
The nickel market is considered crucial for industries tied to clean energy, such as electric vehicles, solar panels, and semiconductor production. The U.S. has also expressed concern that the deal could disrupt the availability of critical minerals, especially at a time when China has imposed export restrictions on rare earth elements and other essential materials.
In its defense, Anglo American (AAL.L) said the decision to sell the assets to MMG (1208.HK) was based on the company’s strong financial offer and its ability to manage the operations responsibly. The company emphasized that the deal was conducted according to the highest governance standards, ensuring that the future of the operations and local communities would be safeguarded.
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