South32 sells Cerro Matoso nickel mine as it looks to copper and zinc

South32 has entered a binding agreement to divest Cerro Matoso to CoreX Holding, receiving nominal upfront consideration and additional payments of up to $80 million tied to future nickel production and prices, plus up to $20 million for permitting milestones over five years.

The deal supports South32’s strategy to streamline its portfolio toward higher-margin metals critical to the green energy transition, bolstering its capacity to invest in copper and zinc.

Shares of South32 fell 0.5% to A$3.10 ($2.02) in afternoon trading in Australia following the announcement. The company’s market cap stands near A$14 billion ($9.1 billion).

Nickel collapse

Nickel producers are grappling with a sharp price collapse fueled by surging output from Indonesia. South32’s nickel production decreased by 6% in the nine-month period ended March 2025 due to lower planned nickel grades.

BHP said in July 2024 that it would suspend its Western Australia nickel operations from October, citing a plunge in prices and a global oversupply of the metal.

Cerro Matoso, a major open-pit ferronickel operation in Córdoba, Colombia, has been struggling amid structural shifts in the nickel market and falling prices.

CoreX, a global industrial conglomerate, will assume all current and future liabilities upon completion.

The deal will support CoreX’s strategy of growing its nickel production globally.

The company recently acquired Compagnie Minière du Bafing in Côte d’Ivoire, and also owns Golden Eagle Nickel in the Republic of North Macedonia and NewCo Ferronikeli in the Republic of Kosovo.

South32 will record a $130 million impairment charge in fiscal 2025 related to the Cerro Matoso sale, though this loss will be excluded from underlying earnings.

The deal is expected to close in late 2025, subject to merger approvals and corporate reorganization.