07 JULY 2025
South32 has entered into a binding agreement to sell Cerro Matoso to a subsidiary of CoreX Holding.
Cerro Matoso is an open-cut mine and smelter producing ferronickel, located in Cordoba, Colombia.
The Transaction follows a strategic review in response to structural changes in the nickel market.
“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,” said Graham Kerr, South32 Chief Executive Officer.
“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.
“Cerro Matoso has a long and proud history in Colombia. 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.”
On completion of the Transaction, CoreX Holding (Buyer) will pay nominal consideration and assume economic and operating control of Cerro Matoso1, including all current and future liabilities2.
The Buyer will make future cash payments of up to US$100M, as follows:
- up to US$80M of price-linked consideration3 based on future production and nickel prices; and
- up to US$20M, in four equal payments, based on permitting milestones within the next five years for the Queresas & Porvenir North project.
The Transaction is subject to the satisfaction or waiver of certain conditions, including international merger clearances and a reorganisation of the entity which holds Cerro Matoso.
The Transaction is expected to complete in late CY25, subject to these conditions.
Read more in the exchange release (.pdf)
1 By way of sale of subsidiary companies which hold South32’s 99.9% interest in Cerro Matoso S.A. and 100% interest in South32 Energy S.A.S. E.S.P.
2 Except for an immaterial potential historic claim.
3 The price-linked consideration applies from the period commencing from the later of January 2027 and the first anniversary post completion, for a period of 3.5 years, with payments to be made semi-annually. The price-linked consideration will be paid if the average realised nickel price exceeds US$15,000/t in any period, in which case 12.5% of incremental sales revenue (net of freight, royalties and statutory tax) above US$15,000/t is payable, increasing on a linear scale to 50% of incremental sales revenue (net of freight, royalties and statutory tax) at or above US$19,000/t. It does not apply to sales revenue from externally sourced ore.