MMG, a mining company listed on the Hong Kong Stock Exchange (stock code: 1208.HK), committed on Friday to supply ferronickel to European stainless steel producers, in order to address the European Union antitrust regulator’s regulatory concerns over its US$500 million acquisition of Anglo American’s (LON:AAL) Brazilian nickel assets. Earlier this month, the EU held a tense closed-door hearing at which MMG and Anglo American defended the deal before European Commission officials and third parties, after which MMG proposed the above supply assurance plan.

The European Commission is the EU’s competition regulator. The Commission had previously warned that MMG might divert ferronickel supply from Europe to China, which would harm the interests of European stainless steel producers; at the same time, there has been concern at the overall EU level about dependence on China for critical minerals.

Troy Hey, Executive General Manager of Corporate Relations at MMG, said in a statement that the company’s commitment is a supply guarantee that is legally binding under English law and subject to independent monitoring.

A person familiar with the matter said the substance is: MMG will issue legally binding commitments to European stainless steel producers among Anglo American’s existing customers — throughout the entire mining life of the Brazilian mine, these customers can maintain their existing purchase volumes and receive the same quantity of ferronickel as at present.

Anglo American has signaled that if the deal is rejected by EU regulators, the company may close the Brazilian mine.

Anglo American said this remedy is expected to help the European Commission approve the acquisition.

An Anglo American spokesperson said: “This robust, efficient and complete solution amounts to supply security insurance for European stainless steel producers and can completely eliminate the competition concerns raised by the European Commission.”