Anglo American has agreed to sell its nickel business to MMG Singapore Resources for a cash consideration of up to $500m (£396.8m).

The nickel business, which is set to be sold to the wholly owned subsidiary of MMG Limited, comprises two ferronickel operations in Brazil and two high quality greenfield growth projects.

The cash consideration is set to comprise of an upfront cash payment of $350m (£277.7m) at deal completion, with the potential for up to $100m (£79.4m) in a price-linked earnout and a contingent cash consideration of $50m (£39.7m) linked to the final investment decision for the development projects.

The firm said that the nickel business is "well positioned to both the stainless steel and battery value chains".

Chief executive at Anglo American, Duncan Wanblad, said: "The sale of our nickel business after a highly competitive process marks a further important milestone towards simplifying our portfolio to create a more highly valued copper, premium iron ore, and crop nutrients business.

"Today's agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate a total of up to $5.3bn of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses.

"MMG is well-respected as a safe and responsible operator and we believe our agreement represents a strong outcome not only for our shareholders, but also for our employees and Brazilian stakeholders. We will work together to ensure a successful transition."

Chief executive at MMG, Cao Liang, added: "We are excited by our acquisition of Anglo American's nickel business which provides important diversification for our business and strengthens our presence in Latin America. This is a strong business with a talented team, growth potential and demonstrated excellence in sustainability performance and we look forward to continuing this positive legacy.

"MMG and Anglo American have a long track record of close collaboration and shared values demonstrated through our commitment to ICMM principles. We look forward to working together towards completion."

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