Brazil's "Folha de S.Paulo" reported on the front page that a competition for Brazil's nickel resources has sparked a global battle worth billions of dollars.
On February 17, 2025, to avoid BHP's $4.9 billion all-cash acquisition proposal, Anglo American announced it would sell its nickel mining business in Brazil to China Minmetals Resources Limited (MMG) for $500 million "to streamline its investment portfolio." It is reported that Anglo American has focused on building a high-quality copper and iron ore business, gradually exiting nickel, coal, and platinum mining.
China Minmetals Resources Limited (Minmetals Resources) acquired Anglo American's nickel mining business in Brazil for less than $500 million, which triggered strong reactions from Western competitors and industry associations.
Western companies believe that China's market share in the nickel sector has reached 60%, and this acquisition will exacerbate global supply chain fragility and threaten EU supply chain security. Dutch mining company Corex and the US Steel Association have submitted complaints to the EU, Brazil, and the US governments, requesting intervention.
The Brazilian nickel mining project sold by Anglo American was originally priced at $900 million, but was eventually acquired by Minmetals Resources at a low price. This deal caused dissatisfaction among Dutch mining company Corex. Its actual owner, Turkish billionaire Robert Yucel Yildirim, accused Minmetals Resources of not explaining why they lost the bid and questioned the reasonableness of the transaction.
In recent years, Chinese enterprises have significantly increased their investment activities in the global mineral resources sector. Meanwhile, Western mining giants have shrunk their market capitalization by over 80% due to the metal price slump between 2015 and 2019, and have stepped back from the leading position in the industry to a more cautious participation.
The conflict between Dutch and Chinese companies will be discussed at the European Commission and the Brazilian Economic Protection Management Committee.
The Baramassa Correixes Holding Company located in the northern part of Goiás State in Brazil has 12,000 employees. It is a leased site of a Dutch company, which stated that due to its bid for the nickel mine, it has become involved in a global competition worth billions of dollars, which is crucial and strategically significant for the industry.
Anglo American is a multinational company that has been operating since 2004, and it has sold a mine to a Chinese company. In Brazil, the Economic Defense Management Committee may take action.
Original: www.toutiao.com/article/1841558399355916/
Statement: This article represents the views of the author.