7th Jul 2025 08:42
(Alliance News) - South32 Ltd said on Monday it has agreed to sell its nickel refinery at Cerro Matoso SA in Colombia to CoreX Holding BV.
The Perth-based diversified miner noted that the transaction follows a strategic review amid structural changes in the nickel market.
On completion of the transaction, CoreX will pay a nominal consideration and assume economic and operating control of Cerro Matoso, including all current and future liabilities.
CoreX will make future cash payments of up to USD100 million, or around ZAR1.78 billion, with up to USD80 million price-linked consideration based on future production and nickel prices, and up to USD20 million, in four equal payments, based on permitting milestones within the next five years for the Queresas & Porvenir North project.
The transaction is subject to certain conditions, including international merger clearances and a reorganisation of the entity which holds Cerro Matoso.
South32 expects the disposal to complete late this year.
"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," South32 Chief Executive Officer Graham Kerr said.
"The transaction 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," Kerr said.
CoreX is a vertically integrated, global industrial conglomerate established in 2024 by Robert Yuksel Yildirim.
Shares in South32 were down 0.3% to ZAR35.75 on Monday morning in Johannesburg. They were up 0.4% to 148.80 pence in London. They closed down 0.6% to AUD3.10 in Sydney.
By Artwell Dlamini, Alliance News senior reporter South Africa
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