The American Iron and Steel Institute has requested White House intervention regarding a $500 million Brazilian transaction. The organization claims this deal could grant China greater control over global nickel reserves, though the buyer MMG has disputed this assertion.
Anglo American Plc announced in February its intention to sell its Brazilian nickel operations to MMG. MMG is a Hong Kong-listed company controlled by China's state-owned mining enterprise China Minmetals Corp. The transaction is anticipated to close during the current quarter.
In correspondence received by US Trade Representative Jamieson Greer on August 18, the American Iron and Steel Institute stated that this potential acquisition would provide the Chinese government with "direct influence" over substantial nickel reserves, thereby strengthening control over this critical metal. Nickel plays an essential role in electric vehicle battery production and stainless steel manufacturing.
It remains unclear how the White House might intervene to block this transaction. However, the Trump administration has prioritized restoring American metal and mineral production as a core objective and is currently engaged in tariff negotiations with China. Indonesia, which operates the world's largest nickel industry, has benefited from Chinese-dominated investments.
"The Brazilian government must explore alternative options to maintain market-based ownership of these strategic nickel assets and ensure future access to this critical mineral remains open and equitable," the US lobbying organization stated in its correspondence.
This appeal forms part of a public consultation initiated by the US Trade Representative's office to assess whether Brazil's trade practices might harm American interests.
An MMG spokesperson responded via email that the Brazilian assets primarily supply nickel pig iron to stainless steel producers, with Europe representing one of the key markets.
"This would be MMG's first operational nickel mining asset, and we plan to continue selling products to existing international customers and markets," the spokesperson noted. "From our perspective, this transaction will not impact market competition."
As part of a broader business streamlining initiative, Anglo American has commenced the divestiture of its nickel operations, a move designed to address BHP Group's hostile takeover attempt. Last week, Anglo American faced a significant setback when its deal to sell a major Australian coal asset portfolio to Peabody Energy Corp fell through, with the buyer ultimately withdrawing.