EU scrutiny of Anglo-MMG nickel deal tests China stance
Brussels weighs ferronickel supply risks as Chinese ownership of overseas resources draws growing scrutiny.
The European Union is scrutinizing a $500-million acquisition by Chinese-backed MMG of Anglo American's Brazilian nickel business, a move seen as testing China's stance on strategic resource supply chains. European regulators are investigating whether the deal could divert ferronickel from Europe, potentially increasing costs for stainless steel producers.
The European Commission is expected to issue a formal warning on the transaction. MMG maintains the transaction will not limit market access, while Anglo American argues the deal should be cleared without conditions. Brazil and Indonesia are key ferronickel producers, while China is a major producer and consumer of nickel pig iron.
Critics argue the supply figures do not fully capture the challenges of replacing Brazilian ferronickel, citing variations in nickel content, product quality, and carbon intensity. The transaction also raises broader geopolitical concerns, as EU policymakers seek to reduce reliance on Chinese raw materials amid escalating trade tensions.
Written by urgent.news from Mining.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
