American group calls to Washington to investigate MMG Nickel Deal

(Bloomberg) – The American Iron and Steel Institute has asked the White House to intervene in a $ 500 million agreement in Brazil who claims that China could give greater control over the global nickel reserves, although the buyer MMG Ltd. rejected the claims. Anglo American PLC said in February that it would sell its Brazilian nickel mines to MMG, a listed company Hong Kong controlled by state -run China Minmetals Corp. The transaction is expected to close this term. In a letter sent to US trade representative Jamieson Greer on August 18, the Institute argued that the potential acquisition would give Beijing ‘direct influence’ on substantial nickel reserves, sharpening the grip on a metal that is essential for electric vehicles and stainless steel. It is unclear how the White House would enter to stop the agreement. However, the Trump administration has made the revival of US metals and mineral production a major priority and is currently in tariff negotiations with China. Indonesia is home to the world’s largest nickel industry, which has benefited from the Chinese guided investment. “It is imperative that the government of Brazil investigate alternatives that will preserve the market -oriented ownership of these strategic nickel assets and ensure that future access to this critical mineral remains open and fair,” the US lobby group said in the letter. The request is part of a public consultation launched by the USTR about whether Brazilian trading practices can harm US interests. Brazilian newspaper Valor Economico first reported the news. The Brailian assets produce Ferronickel for stainless steel producers, with Europe representing a large market, a MMG spokesman said in ‘NE -mail answer to questions. “It will be MMG’s first operating asset asset, and we intend to continue selling products to existing international customers and markets,” the spokesman said. “This transaction – in our opinion – will not affect competition.” The Global Mining Giant began the sale of its nickel industry as part of a broader simplification plan in response to an unwanted takeover of BHP Group. Anglo suffered a major setback last week after an agreement to sell its large Australian coal portfolio, the buyer Peabody Energy Corp. -With help from Andrew Janes. (Updates with comments of MMG in the 7th and 8th paragraphs) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP