Anglo American (JO:AGLJ), a London-listed mining company, said on Tuesday that it has agreed to sell its nickel business to a subsidiary of China’s mining firm MMG.

The deal, which is worth up to $500 million in cash, is part of Anglo American’s strategy to streamline its operations after a failed takeover bid by rival BHP in the previous year.

The terms of the agreement include an upfront cash payment of $350 million upon completion. The remaining balance is contingent on certain milestones and investment decisions.

Duncan Wanblad, Chief Executive of Anglo American, stated that the sale of the nickel business, which followed a highly competitive process, signifies a key step towards simplifying the company’s portfolio.

In addition to the sale of its nickel business, Anglo American has also decided to spin off its platinum business. This move is planned for the summer of 2025.

The company intends to retain a 19.9% stake in the platinum business, but will not have any representation on the board of Anglo American Platinum following the split.