South32 to sell Cerro Matoso for up to R1.78bn amid structural nickel market changes

SOUTH32 plans to sell Cerro Matoso in Colombia to a subsidiary of the global mining, industrial, and financial group, CoreX Holding, for up to $100 million (R1.78 billion) but will take a $130m impairment.

- EDWARD WEST

The global mining and metals company said Monday that the deal followed a review of its operations in response to structural changes in the nickel market. The transaction is expected to be finalised in late 2025.

CoreX will take control of Cerro Matoso, including all liabilities, after paying up to $80m based on future production and nickel prices, and up to $20m in four equal payments based on milestones within the next five years for the Queresas & Porvenir North nickle exploration and development project.

"The transaction is consistent with our strategy and will further streamline our portfolio toward higher-margin businesses in minerals and metals critical to the world's energy transition," South32 CEO Graham Kerr said in a statement.