Anglo American saw underlying EBITDA from its Brazilian nickel operations fall 58% in the first half of 2026, even as European regulators scrutinized a proposed sale intended to remove the assets from its portfolio. The dispute now presents competing supply risks: Brussels fears Chinese ownership could restrict nickel deliveries to Europe, while Anglo American warns that blocking the transaction could eventually eliminate production altogether.
The operations generated $18 million in underlying EBITDA during the six months ended June 30, down from $43 million a year earlier, according to Anglo American’s financial results. Nickel production declined 6% to 18,200 tonnes from 19,300 tonnes, reflecting maintenance at its Barro Alto and Codemin facilities.
Higher unit costs and lower sales volumes weighed on earnings, partially offset by stronger realized prices.
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Anglo American agreed in February 2025 to sell the business to Chinese state-backed MMG for up to $500 million. The agreement includes $350 million payable at completion, up to $100 million tied to nickel prices, and another $50 million contingent on investment decisions for development projects.
The transaction also includes the Jacaré and Morro Sem Boné projects.
According to Reuters, Anglo American Brazil COO Ruben Fernandes prepared to tell European regulators at an October 8 hearing that rejecting the acquisition could force the company toward care and maintenance, followed by eventual closure.
Fernandes maintained that MMG was the only credible buyer identified during Anglo American’s divestment process.
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However, the possibility of suspending operations predates the regulatory dispute. Anglo American’s May 2024 restructuring announcement already identified care and maintenance alongside divestment as possible approaches to its nickel business.
The assertion that MMG is the only credible purchaser also faces questions.
Turkish investor Robert Yildirim’s CoreX Holding previously submitted a competing bid. Yildirim expressed continued interest in an alternative transaction in September, according to Miningmx’s account of Financial Times reporting.
The European Commission issued formal objections on September 16, identifying concerns that MMG could redirect low-carbon ferronickel toward Chinese stainless steel producers affiliated through its state-controlled ownership structure.
Regulators fear reduced European supply could increase input costs for stainless steel manufacturers. The findings remain preliminary.
MMG disputed those concerns in a September 17 statement, arguing that it has no existing ferronickel production or market share and intends to preserve European customer contracts.
The Commission has until November 30 to decide whether to approve the acquisition.
