South32 to sell Cerro Matoso nickel operation to CoreX for up to $100m

MELBOURNE - South32 (OTC:SOUHY) Limited (ASX/LSE/JSE:S32) announced Monday it has entered into a binding agreement to sell its Cerro Matoso nickel operation in Colombia to a subsidiary of CoreX Holding B.V. for nominal upfront consideration and potential future payments of up to $100 million.

The divestment follows a strategic review prompted by structural changes in the nickel market. Upon completion, CoreX will assume economic and operating control of the asset, including all current and future liabilities.

The future payment structure includes up to $80 million in price-linked consideration based on production and nickel prices, plus up to $20 million tied to permitting milestones for the Queresas & Porvenir North project over the next five years.

South32 Chief Executive Officer Graham Kerr said the transaction aligns with the company’s strategy to focus on "higher margin businesses in minerals and metals critical to the world’s energy transition" while providing "additional balance sheet flexibility to support investment in growth options in copper and zinc."

The sale is expected to complete in late 2025, subject to international merger clearances and corporate reorganization requirements.

As a result of the transaction, South32 will report Cerro Matoso as a discontinued operation and record an impairment expense of approximately $130 million in its FY25 financial statements, which will be excluded from underlying earnings.

CoreX, established in 2024 by Robert Yüksel Yildirim, operates across multiple sectors including metals and mining, ports, energy, and logistics in 55 countries with over 20,000 employees. The company’s metals division has been expanding its nickel production globally with recent acquisitions in Côte D’Ivoire, North Macedonia, and Kosovo.

Goldman Sachs is acting as financial adviser and Freshfields as legal adviser to South32 for the transaction, according to the company’s press release statement.

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