Anglo American Sells Brazil Nickel to China, Dismissing U.S. Security Warnings

Anglo American will sell its Brazilian nickel business to China’s MMG, part of state-owned China Minmetals, for up to $500 million.

The package includes two producing ferronickel mines in Goiás and two projects in Pará and Mato Grosso. Anglo will receive $350 million upfront and up to $150 million tied to nickel prices and project milestones.

The company framed the move as part of its 2024 plan to focus on copper, iron ore, and fertilizers. Its Brazil nickel mines produce about 40,000 tons each year, roughly half of national output, supplying the stainless steel industry.

For Anglo, the deal is about immediate payouts and exiting a sector it no longer prioritizes. But the sale drew backlash. Corex Holding, tied to Turkey’s Yildirim Group, said it offered $900 million and filed complaints in Brazil and the European Union.

Both CADE and the European Commission opened reviews, with the EU listing the case as M.11944. Brazil’s land agency INCRA also raised questions, citing restrictions on foreign ownership of rural land.

The most forceful reaction came from the United States. On August 18, 2025, the American Iron and Steel Institute urged Washington to act, warning that Chinese control of Brazilian nickel mirrors past U.S. dependence on Chinese rare earths.

Anglo American showed no concern for those warnings. By handing MMG roughly half of Brazil’s nickel supply, it gave Beijing a new bargaining chip in global minerals.

Washington rarely lets such moves pass unchallenged. The U.S. has sanctioned global metals giants, imposed tariffs under national security rules, and blocked takeovers when it deemed strategic interests at risk.

America has both the means and the willingness to punish companies and countries that feed Chinese leverage. Whether this deal closes on schedule in the third quarter of 2025 will depend not only on Brazil’s regulators but also on how far Washington pushes back.

The sale may reshape more than a balance sheet; it may reset how the West confronts China’s growing reach into critical resources.

How the U.S. Could Hit Back

Sanctions (OFAC/IEEPA): In 2018, the U.S. sanctioned Rusal, the world’s second-largest aluminium producer, freezing it out of dollar markets until governance changes.

Export controls (Commerce/BIS): Huawei and affiliates were placed on the Entity List in 2019, cutting them off from U.S. components and software.

Tariffs (Section 232/301): Steel, aluminium, and Chinese goods faced sweeping tariffs in 2018–2019 under national security and unfair practices laws.

Investment blocks (CFIUS): U.S. presidents blocked Ralls (2012) and Broadcom–Qualcomm (2018) deals on national security grounds.

Import bans (UFLPA): Since 2022, U.S. Customs has detained goods tied to forced labor in Xinjiang, disrupting Chinese supply chains.