Cathay Beijing Investment Fund Management Co., Ltd. — Up to RMB 3.6 billion; MMG acquires Anglo American’s nickel business, marking its first entry into Brazil!

On February 18, Anglo American announced it had reached a definitive agreement to sell its nickel business to MMG Singapore Resources, a wholly owned subsidiary of MMG Limited, for an initial cash consideration of USD 350 million, with a maximum value of USD 500 million (approximately RMB 3.64 billion). The transaction is expected to close in the third quarter of this year. Anglo American’s nickel operations consist primarily of two nickel-iron projects—Barro Alto and Codemin—both located in Brazil. In addition, Anglo American holds two high-quality greenfield growth projects: Jacaré and Morro Sem Osso. In 2024, Anglo American’s nickel output totaled 39,400 tonnes, down 2% year-on-year. In 2024, following its rejection of BHP’s USD 49-billion acquisition offer, Anglo American embarked on a strategic transformation—divesting non-core assets to sharpen focus on its core businesses and thereby enhance overall competitiveness and market position. In 2024, Anglo American sold its remaining metallurgical coal assets to U.S.-based Peabody Energy for up to USD 3.775 billion. It also sold 17.5 million shares of its subsidiary Anglo Platinum, raising ZAR 9.6 billion (approximately USD 530 million), and announced plans to sell its minority stake in Queensland-based mining operator Jellinbah Group for AUD 1.6 billion (approximately USD 1.1 billion). The 2025 sale of its nickel business to MMG Singapore Resources represents a key step in Anglo American’s ongoing effort to optimize its portfolio and concentrate on core operations. MMG Limited was formerly Dongfang Xinyuan (Group) Limited, incorporated in Hong Kong in 1988. China Minmetals became its controlling shareholder in 2004. In 2009, China Minmetals, through its subsidiary Minmetals Non-Ferrous Metals Co., Ltd., acquired most of the assets of Australian miner OZ Minerals Limited—including Sepon, Golden Grove, Century, Rosebery, Avebury, Dugald River, High Lake, Izok Lake, and other exploration- and development-stage assets—and subsequently established Minerals and Metals Group (MMG). In 2010, MMG Limited acquired MMG from Minmetals Non-Ferrous Metals for USD 1.846 billion. In 2011, MMG Limited divested its former trading, processing, and downstream businesses to Minmetals Non-Ferrous Metals for consideration, transforming itself into a pure upstream resource development company focused exclusively on metal mining. In 2012 and 2014, MMG successfully acquired Kinsevere Mine in the Democratic Republic of the Congo for USD 1.3 billion and Las Bambas copper mine in Peru for USD 7.005 billion, completing its strategic positioning in the copper sector.

The Economist: Chinese enterprises are investing frantically in Brazil.

In 2023, China invested USD 1.73 billion in Brazil—a 33% increase year-on-year—with power generation accounting for 39% of that total and electric vehicle–related automotive investments reaching USD 568 million, up 56%. In 2024, China invested in 39 projects in Brazil, totaling USD 4.2 billion—an increase of 113% year-on-year—the highest level since the pandemic and the largest among emerging economies. In 2025, China invested in 52 projects in Brazil, totaling USD 6.1 billion—a 45% increase year-on-year—and the number of projects set a new record. Beyond scale, investment structure is also shifting. Historically, Chinese investment in Brazil centered on three sectors: State Grid, oil, and infrastructure—the so-called 'old trinity.' In 2024, power generation still accounted for 34% and oil for 25%, but manufacturing investment surpassed both oil & gas and mining to become the new dominant force: Great Wall Motor took over Mercedes-Benz’s São Paulo plant; BYD invested USD 1 billion to retool Ford’s former facility in Bahia; Geely invested BRL 3.8 billion to form 'Renault Geely Brazil' with Renault, acquiring a 26% stake. It’s not just automobiles. Hisense, Huawei, and 99Food (a Shopee subsidiary) are expanding aggressively in television and food delivery markets; ByteDance announced in late 2025 that it would build a large-scale data center in northeastern Brazil; Brazil issued its first-ever yuan-denominated bond in June, and its inaugural battery auction is scheduled for December—BYD has already shifted its next-phase investment focus to grid-scale energy storage. Why Brazil? The subtext of The Economist article is clear: trade barriers erected by Europe and the United States serve as a push factor—but Brazil’s intrinsic 'composite' economic profile is the fundamental pull. Tulio Cariello, Research Director at the China-Brazil Chamber of Commerce, put it well: Mexico is tied to 'U.S.-adjacent industry,' Indonesia to 'mining,' whereas Brazil uniquely combines industry, natural resources, power generation, and infrastructure into one complex, integrated economy. China is the world’s largest producer of new-energy vehicles and lithium-ion batteries—but domestic lithium reserves are insufficient. In 2024, China imported approximately 5.25 million tonnes of lithium spodumene concentrate and net-imported 231,000 tonnes of lithium carbonate. Australia ranked first among supplying countries, while Brazil was already among the top sources. It’s not just lithium. In 2025, MMG—under China Minmetals—acquired Anglo American’s Barro Alto nickel mine (including the Codemin nickel-iron smelter) for USD 500 million; if approved, China would control 50% of Brazil’s nickel output (about 1% of global production). Niobium—90% of global supply originates in Brazil—has long been a strategic target: China entered CBMM in 2011, and CMOC acquired Anglo American’s Catalão niobium mine in 2016; today, Chinese firms control roughly one-third of Brazil’s niobium output. Similarly, acquisitions in copper and tin—including Baiyin Group’s purchase of Vale Verde and CNMC’s acquisition of Taboca in 2024—underscore this trend. Agricultural commodities represent another longstanding story: China is the world’s largest buyer of soybeans, beef, and poultry, while Brazil ranks among the world’s top exporters. This complementary relationship—'you supply us minerals and grain; we supply you technology and markets'—has remained unchanged since China surpassed the United States as Brazil’s largest trading partner in 2009. Compared with the investment boom in Brazil, Mexico’s relative coolness is unsurprising. From 2020 to 2025, Mexico attracted cumulative Chinese investment of USD 11.567 billion across 98 projects—making it Latin America’s second-largest destination for Chinese capital after Brazil. Automotive investment alone accounted for 43% of all Chinese investment in Mexico.

EU Warns MMG-Anglo Nickel Deal May Hurt Competition, Lift Prices

4 days ago

The EU warns MMG Ltd.'s acquisition of Anglo American's nickel business may restrict competition and raise costs for European stainless steel producers. Regulators fear the deal could divert low-carbon ferronickel supplies, impacting prices due to limited alternative sources.

bloomberg

2026-09-08

MMG Faces EU Antitrust Warning Over Anglo American Deal, Sources Say

2026-09-16

EU Warns MMG-Anglo Nickel Deal May Hurt Competition, Lift Prices

EU Warns MMG-Anglo Nickel Deal May Hurt Competition, Lift Prices

FAQ