SYDNEY: South32 Limited (ASX/LSE/JSE: S32; ADR: SOUHY) has signed a binding agreement to sell its Cerro Matoso nickel operation to a subsidiary of CoreX Holding B.V., marking a strategic shift amid structural changes in the nickel market.
Under the deal, CoreX will assume economic and operational control of Cerro Matoso, including all current and future liabilities, for nominal upfront consideration. The buyer could pay up to $100 million in future cash payments, including up to $80 million tied to nickel prices and production, and $20 million linked to permitting milestones for the Queresas & Porvenir North project over the next five years.
The transaction, expected to close in late 2025, is contingent on regulatory approvals and corporate restructuring.
South32 CEO Graham Kerr said the sale aligns with the company’s strategy to focus on higher-margin metals critical to the energy transition. “This delivers a clean exit and strengthens our balance sheet for growth in copper and zinc,” he added.
Cerro Matoso will be reported as a discontinued operation in South32’s financial statements until the deal closes. The company anticipates a $130 million impairment charge in FY25, excluded from underlying earnings.
CoreX, a global industrial conglomerate founded in 2024 by Robert Yüksel Yildirim, operates in metals, energy, and logistics across 55 countries. Its metals division recently expanded its nickel portfolio with acquisitions in Africa and Europe.
Goldman Sachs advised South32 on the deal, with Freshfields providing legal counsel.