Ferronickel shots ready to be shipped after the granulation process from Anglo American’s Codemin nickel operation in Brazil.
Anglo American PLC is considering selling its Brazilian nickel operations as the company races to overhaul its business amid the prolonged slump in commodity prices, according to people familiar with the matter.
The London-based miner is under immense pressure to strengthen its balance sheet with metal and mineral prices in the dumps. Anglo has already suspended its dividend, announced 85,000 job cuts, as well as plans to divest underperforming assets.
The company aims to raise $4-billion (U.S.) from asset sales and has so far targeted its South African coal, some copper, Australian thermal coal, phosphate and niobium.
Under Anglo's restructuring plans, the miner will whittle down its massive portfolio by 60 per cent to focus on mines that have the ability to generate cash throughout the commodities downturn.
"If not, they won't be in the portfolio. It is as simple as that," Anglo's chief executive officer Mark Cutifani told investors in December.
The company, which also mines manganese, diamonds, platinum and iron ore, has been taking a hard look at its nickel, coal and iron ore operations, although it has yet to announce further divestment plans.
The sale of its Brazilian nickel operations, Barro Alto and Codemin, would help the miner raise more funds.
If Anglo decides to go ahead with the nickel sale, the process is expected to formally start in a few weeks, the sources said. It is unknown how much Anglo expects to fetch.
A company spokesman said: "We won't comment on this type of speculation about our business."
It could be a difficult sale for Anglo to conduct, given that nickel has lost 40 per cent of its value over the past year. The metal used to make stainless steel is now trading below $4 a pound.
Barro Alto, a relatively new mine, produced 28,000 tonnes of nickel in 2014. Codemin produces around 9,000 tonnes a year, according to Anglo's website.
Other mining heavyweights such as Glencore PLC and Freeport-McMoRan Inc. are also scrambling to improve their financial position and have talked about asset sales. Meanwhile, companies such as Barrick Gold Corp. and AngloGold Ashanti Ltd. have already sold prized mines to reduce their debt.
So far this year, Anglo American sold its Callide thermal coal mine in Australia for an undisclosed sum. It is in the middle of selling its niobium and phosphate business in Brazil. Goldman Sachs and Morgan Stanley are running the sale and more than two dozen mining players have been invited to participate, sources said.