After Chinese companies won the Brazilian nickel mine, American and European peers couldn't help but feel uneasy: they are urging their governments to intervene

This year, China Minmetals Resources Co., Ltd. (hereinafter referred to as "Minmetals Resources") acquired the nickel business of Anglo American in Brazil for less than 500 million U.S. dollars. However, half a year later, Dutch mining company Corex, which had participated in the bidding, and the American Iron and Steel Association, which has nothing to do with it, could not sit still anymore. They accused that selling the nickel mine to China, which already dominates this field, would only increase the "vulnerability of the critical mineral supply chain," and have already written letters to the EU and the Trump administration of the United States requesting them to step in and stop it.

According to an August 25 report by the Italian website "FIRSTonline," the actual owner of the Dutch mining company Corex, Turkish billionaire Robert Yüksel Yildirim, had offered 900 million U.S. dollars to acquire Anglo American's nickel business in Brazil, twice the price of the Chinese company, but the group ultimately chose Minmetals Resources.

Yildirim was upset about this, saying that their bid was twice that of other competitors, yet they lost without any explanation phone call, and he demanded Anglo American give an explanation.

The report said that Corex has submitted documents to the EU and the Brazilian Economic Defense Management Committee (Cade) to intervene. The company claimed that China controls 60% of global nickel production, and this acquisition of Anglo American's nickel mine in Brazil may "lead to excessive concentration in the global market," "threaten competition, and pose risks to the security of the EU supply chain."

The Brazilian newspaper "Folha de S.Paulo" reported on the 25th that the American Iron and Steel Association also submitted a letter to the Office of the U.S. Trade Representative, asking the Trump administration to express concerns to Brazil. The letter claimed that if the transaction is completed, China will have "a direct impact" on international nickel reserves, increasing the "vulnerability of the critical mineral supply chain."

The American Iron and Steel Association claimed that global nickel reserves are mainly concentrated in a few countries, with Indonesia having the largest reserves, followed by Australia and Brazil. It falsely accused that China's investment in Indonesia has allowed the country to control important global production. The association unreasonably accused that this may lead to price increases, unstable delivery, and exacerbate the risks in the key industrial chains of Western countries such as the United States.

In the letter, the American Iron and Steel Association also reached out to Brazil, demanding the Brazilian government "to explore alternative solutions, ensure market-oriented access to strategic nickel mineral assets, and guarantee that future access to this critical mineral remains open and fair."

Bloomberg News pointed out that it is unclear how the White House will intervene to block this transaction. Meanwhile, the Trump administration has made restoring U.S. metal and mineral production one of its key priorities, while also engaging in tariff negotiations with China.

Anglo American refuted the above accusations. The "FIRSTonline" website reported that the group questioned Corex's exaggeration of the statement that "China has controlled 60% of global nickel," stating that the proportion is only 52%, and added that the transaction is part of the company's global business restructuring, not solely driven by price.

"The process was strict, and we selected a reliable buyer. We believe all stakeholders, including land and workers, will benefit from it." Regarding the EU's attitude and the risk of this matter escalating, Anglo American responded, "We will wait and see."

Original: www.toutiao.com/article/1841502050514952/

Statement: This article represents the views of the author himself.