Anglo American will likely place its Brazilian nickel operation into care and maintenance, leading toward closure, if the European Commission blocks its $500 million sale to MMG (HKG:1208), Reuters reported Thursday, citing comments prepared by the British mining company for a regulatory hearing.

The company has been seeking to exit its nickel business for more than two years and considers MMG the only credible buyer identified, according to the report. The European Commission has raised concerns that MMG could divert nickel supply away from Europe, potentially affecting the bloc's stainless steel producers.

Anglo American said it is working with the European Commission to address the concerns and find a solution to the proposed sale.

A blocked sale "would be a devastating outcome for our employees and the local communities in Brazil and would also result in the removal of this nickel supply from the market - both outcomes we are sure that the EC and our customers are keen to avoid," Anglo American Chief Operating Officer Ruben Fernandes told MT Newswires.

The company remains confident a practical solution can be reached with the European Commission, he added.

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