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

Australian miner South32 (ASX, LSE: S32) has agreed to sell its Cerro?Matoso ferronickel mine in Colombia in a deal worth up to $100?million.

On Monday, South32 entered a binding agreement with global industrial conglomerate CoreX Holding for the divestment, 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, with a market capitalization of near A$14?billion ($9.1?billion). In London, the stock closed 1.35% lower at 146.2 pence.

Nickel collapse

Nickel producers are grappling with a sharp price collapse fueled by surging output from Indonesia.

BHP, the world’s largest miner, 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.

South32, which spun off BHP in 2015, saw its nickel production decrease by 6% in the nine-month period ended March 2025 due to lower planned nickel grades.

Cerro?Matoso, a major open-pit ferronickel operation in Córdoba, Colombia, was part of the struggles amid structural shifts in the nickel market and falling prices.

Upon completion of the sale, CoreX will assume all liabilities related to the nickel mine. South32, meanwhile, will record a $130?million impairment charge in fiscal 2025, 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.

CoreX said the deal will support its strategy of growing its nickel production globally. The company owns Golden Eagle Nickel in North Macedonia and NewCo Ferronikeli in Kosovo, and recently acquired Compagnie Minière du Bafing in Côte d’Ivoire.

(With files from Reuters)