CADE opens investigation into the sale of Anglo American nickel mines to a company controlled by a Chinese state-owned enterprise.

247 - The Administrative Council for Economic Defense (Cade) has launched an investigation into the sale of Anglo American's nickel operations in Brazil to MMG Limited, an Australian company controlled by China Minmetals Corporation. 

The decision was made following a complaint that resulted in the initiation of an Administrative Procedure for Investigation of an Act of Economic Concentration (APAC). According to Anglo American, the value of the deal could reach US$500 million (approximately R$2,7 billion).

The sale, which involves assets in Brazil, has raised concerns, especially in the United States. The American Iron and Steel Institute (AISI) expressed apprehension about the risks of China dominating control of access to nickel, a mineral considered critical for strategic sectors such as technology, defense, and energy transition. 

In a statement, AISI requested that the government of President Donald Trump intervene with the administration of Luiz Inácio Lula da Silva so that the process could be analyzed with greater caution. The institution warned that, if the sale is completed, China would have direct influence over a significant portion of Brazil's nickel reserves, in addition to consolidating its dominant position in Indonesian production, which could exacerbate vulnerabilities in the nickel supply chain.

Nickel, which is essential for the manufacture of electric vehicle batteries, solar panels, and other technological devices, is considered a strategic mineral. The AISI also highlighted that the negotiation could directly impact the supply of critical minerals for American manufacturers, especially at a time when Beijing has imposed restrictions on exports of rare earths, magnets, and other essential minerals.

Anglo American, for its part, defended the sale in an official statement, claiming that the decision to sell its Brazilian operations to MMG was based on criteria such as the value of the offer, the quality of the guarantees presented, the company's track record, and its long-term management capacity. "The sales process was competitive, and we received offers from several global companies. After careful analysis, the decision to sell to MMG was based on the overall quality of the offer," the company stated.

The British mining company reported that the transaction is aligned with its transformation strategy, which aims to focus its efforts on copper, premium iron ore, and fertilizer assets. Anglo's nickel portfolio in Brazil includes production units in Goiás, as well as projects to be developed in other Brazilian states. Anglo highlighted that MMG, with a market value of approximately US$4,7 billion, was chosen for its ability to operate the production units and continue the projects safely and responsibly. The company also stated that the sale was conducted with best governance and transparency practices.