• EC raised concerns about security of ferronickel supply
• Anglo American promised ‘concrete’ solutions for customers

MMG is expected to submit remedies to the European Commission (EC) tomorrow (23 October) to assuage concerns about its purchase of Anglo American’s Brazilian nickel mines, according to two sources close to the deal.

The EC raised concerns in its 16 September Statement of Objections that, following the transaction, MMG could divert low-carbon ferronickel supply away from European markets, leading to higher costs for European stainless steel production.

While details of the remedy offer have not been disclosed, according to a statement on 8 October, Anglo American said it and MMG “stand ready to work closely with [the Commission] and customers over the coming weeks to identify concrete solutions that wholly address their concerns.”

The British mining company has reportedly threatened to close its Brazilian mines if the EC blocks the transaction.

The EC currently has until 30 November to decide on the deal. That deadline will be extended by 15 working days if the parties submit a remedy offer.

The EC, MMG and Anglo American have declined to comment for this article.