South32 has entered a binding agreement to divest its Cerro Matoso nickel operation in Colombia to a subsidiary of CoreX Holding B.V.
The deal will see CoreX assume full economic and operational control of Cerro Matoso, including all current and future liabilities.
South32 will receive nominal upfront consideration but could receive up to $US100 million ($152.7 million) in future payments, tied to performance and project milestones.
These payments include up to $US80 million in price-linked consideration based on future production and nickel prices and an additional $US20 million contingent on permitting milestones for the Queresas & Porvenir North nickel project over the next five years.
South32 chief executive officer Graham Kerr said the decision aligns with the company’s broader strategy to reposition its portfolio for the global energy transition.
“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,” Kerr said.
“(It) will deliver a clean separation of Cerro Matoso and provide additional balance sheet flexibility to support investment in our growth options in copper and zinc.”
The sale marks a significant chapter in South32’s changing focus, as it targets larger scale projects in minerals and metals critical to the energy transition.
“Cerro Matoso has a long and proud history in Colombia,” Kerr said.
“Over the coming months we will work with the buyer, our workforce, the local communities, government, customers and suppliers to support a successful transition of ownership.”
The transaction is expected to close in late 2025, subject to conditions including international merger clearances and a corporate reorganisation of the Cerro Matoso holding entity.
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