ANGLO American will probably close its Brazilian nickel business if EU antitrust regulators block its $500m sale to MMG, Reuters reported, citing prepared remarks for a closed hearing on Thursday.
Last month the European Commission warned that Hong Kong-listed MMG might divert nickel supply away from Europe and hurt the region's stainless steel producers. The case reflects EU concern about the bloc's reliance on China for critical minerals.
Ruben Fernandes, Anglo's chief operating officer in Brazil, will say the long review has already caused considerable uncertainty locally and that blocking the sale would have "very troubling" consequences.
"Recognising that MMG is the only credible buyer that we identified ... we will have little option but to head towards 'care and maintenance' as the pathway to closure," he will say, according to the remarks. Anglo committed to leaving nickel more than two years ago. Fernandes will add that a practical way to address the Commission's concerns could be found.
Cristina Morgan, Anglo's chief financial officer in Brazil, will argue that MMG would keep supplying European customers. She will tell officials that bidders were judged on their operating record, ability to develop projects, plans for employees, fair value and funding.
She will describe MMG, a fellow member of the International Council on Mining and Metals, as a responsible operator offering "deliverable value for the investment".
Troy Hey, MMG's executive general manager of corporate relations, will also attend the hearing to support the deal.