South32 to sell Colombia’s Cerro Matoso nickel asset to CoreX, streamlining focus on copper and zinc amid market shifts.
South32 has entered into a binding agreement to divest its Cerro Matoso operation to a subsidiary of CoreX Holding. Cerro Matoso is an open-cut mining and smelting operation located in Córdoba, Colombia, and is known for its production of ferronickel.
This move comes as part of South32’s broader strategic realignment in response to ongoing structural changes within the global nickel market. The decision follows a comprehensive strategic review and is designed to reposition the company's asset portfolio in alignment with its long-term objectives.
According to South32 Chief Executive Officer Graham Kerr, the sale aligns with the company’s vision of optimizing its portfolio to focus on higher-margin assets that support the growing demand for critical minerals used in the global shift towards cleaner energy sources. “This transaction is consistent with our strategy and supports our efforts to streamline the business around key growth commodities like copper and zinc,” Kerr stated. “It allows us to unlock additional balance sheet flexibility, enabling greater focus on future-oriented investments.”
Kerr further emphasized the historical importance of Cerro Matoso, acknowledging its decades-long contribution to Colombia’s mining industry. He noted that South32 would actively engage with CoreX Holding, employees, local communities, government bodies, customers, and suppliers to ensure a smooth and responsible transfer of ownership.
Under the terms of the agreement, CoreX Holding will assume full operational and economic control of Cerro Matoso upon completion, taking responsibility for all present and future liabilities. While the upfront consideration for the transaction is nominal, the agreement includes the potential for up to $100 million in contingent cash payments to South32.
These future payments are structured as follows:
• Up to $80 million is linked to future ferronickel production volumes and prevailing nickel market prices.
• An additional $20 million may be paid in four equal installments, contingent upon the successful achievement of environmental permitting milestones for the Queresas & Porvenir North project over the next five years.
Before the transaction can be finalized, several conditions must be met, including obtaining necessary international regulatory approvals and completing a reorganization of the legal entity that currently holds the Cerro Matoso asset.
South32 anticipates that the transaction will be concluded by the end of calendar year 2025, assuming all requisite conditions are satisfied or waived.
This divestment signifies a pivotal shift for South32 as it advances its strategy to concentrate on minerals essential to energy transition technologies, such as copper and zinc, while exiting more volatile or lower-margin operations.
