MMG Offers Ferronickel Supply Guarantee Ahead of Nov. 30 End to EU Probe

Key Facts

MMG has offered a legally binding guarantee to maintain ferronickel supply levels for European customers, seeking to address competition concerns the European Commission is examining over its acquisition of Anglo American’s Brazilian nickel business. According to a Dow Jones report, the guarantee is governed by English law and can be monitored independently. Anglo American said the proposal gives European stainless steel producers an “insurance policy for security of supply.” The Commission has set 30 November 2026 as the deadline for completing its in-depth investigation into the deal. Acceptance of the proposal and the Commission’s decision on the acquisition remain unresolved.

MMG says it does not believe the deal raises competition concerns and that the Commission can approve it unconditionally, despite its offer of a supply guarantee. The company describes the Commission’s statement of objections as a preliminary assessment of the deal, not a final decision. According to MMG, the Commission’s review is the last remaining regulatory approval needed to complete the acquisition. The company said on 9 October that a hearing in Brussels addressed its evidence of its ability and commitment to supply ferronickel to European customers. It added that customers provided evidence in support of the deal during the hearing.

The dispute centers on guaranteeing the continuity of European supplies after the assets and associated marketing function are transferred to MMG. Anglo American said the proposed solution addresses the competition concerns raised by the Commission, while also securing supplies for stainless steel producers. In contrast, an MMG official warned that the Brazilian mines would close if the Commission did not approve the deal. The company linked the continued viability and investment in its nickel operations to resolving the Commission’s concerns, and said those operations employ 4,500 Brazilians. These operational interests and jobs give the case a dimension beyond the transfer of assets alone, according to the company’s stated position.

The deal includes, according to MMG, the transfer of Anglo American’s European marketing function and existing customer contracts, while Nickel Brazil remains an independent entity. This means the proposal covers the sales channel for the product to European customers as well as the producing assets themselves. Anglo American announced the sale agreement in February 2025 for cash consideration of up to $500 million. The consideration includes $350 million on completion, a nickel-price-linked component of up to $100 million, and an amount conditional on the projects’ final investment decisions of up to $50 million. The assets include the Barro Alto and Codemin plants and the Jacaré and Morro Sem Boné projects.

The nickel assets produced 39,400 tons in 2024, according to Anglo American. Fourth-quarter production that year was 10,000 tons, down 10% year on year from 11,100 tons in the corresponding quarter of 2023. Full-year production was 39.4 thousand tons in 2024, compared with 40.0 thousand tons in 2023. These figures put the production scale of the assets covered by the deal in context as their transfer to a new owner is reviewed. MMG also said China Minmetals owns 63% of its outstanding shares, and that it has supplied global customers on a commercial basis for more than 16 years.

MMG said the Commission does not classify ferronickel as a strategic raw material, and that it does not currently produce the material or hold a market share in it. The company says ferronickel is traded globally according to commercial demand. But a September 2026 Reuters report said the Commission’s objection centered on the possibility of diverting supplies away from Europe and what that could mean for the competitiveness of Europe’s stainless steel industry. This puts the proposed supply guarantee at the heart of the Commission’s test: will it be sufficient to maintain the supplies European companies rely on? The issue remains part of an investigation on which no final decision has yet been issued.

In 2025, the two companies had previously proposed that MMG buy ferronickel for resale in Europe for up to 10 years, Reuters reported. Reuters also reported that the Commission rejected initial commitments because they did not address competition concerns sufficiently. The new legal guarantee is framed around maintaining current supply levels and can be monitored independently. Anglo American says the solution is comprehensive and effective, while MMG maintains that the deal can receive unconditional approval. The Commission remains responsible for assessing whether the proposed commitments are sufficient.

In the stock market, MMG shares listed in Hong Kong closed at 7.02 Hong Kong dollars on 22 October 2026, compared with 7.47 in the previous session. NGLOY shares closed at $24.14 that day, versus $25.71 on 21 October. These are daily closes ahead of the investigation deadline and do not in themselves determine the outcome of the European review. MMG said the Commission’s review is the last remaining approval after the other regulatory procedures were completed. The deadline for the Commission to conclude its in-depth investigation is 30 November 2026.