Australian mining firm South32 has agreed to sell its producing Cerro Matoso mine in Colombia to a subsidiary of Netherlands-based industrial conglomerate CoreX.
The open-cut mine and smelter, located in Córdoba, produces ferronickel and is set to transfer economic and operational control to CoreX upon completion of the transaction. This move follows a strategic review prompted by structural shifts in the nickel market.
CoreX will assume all current and future liabilities related to Cerro Matoso, with nominal payment terms.
Additionally, future cash payments totalling up to $100m are contingent on production levels, nickel prices, and permitting milestones for the Queresas & Porvenir North project over the next five years.
The deal requires certain conditions to be met or waived, including international merger approvals and a reorganisation of the entity holding Cerro Matoso. Completion is anticipated in late 2025.
As a result of the sale, South32’s financial statements for fiscal year 2025 will reflect an impairment expense of approximately $130m, which will not impact underlying earnings according to the company’s accounting policies.
The transaction will see Cerro Matoso reported as a discontinued operation within South32’s financial results until its conclusion.
South32 CEO Graham Kerr said: “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.
“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.”
Goldman Sachs is serving as financial adviser, while Freshfields is providing legal counsel to South32 in this process. Established in 2024, CoreX operates globally across various sectors including metals and mining, green energy, and logistics.
Located about 20km southwest of Montelíbano in Colombia’s Department of Córdoba, Cerro Matoso is roughly 400km north of Bogotá.
The lateritic nickel deposit is formed over ultramafic rocks, primarily lightly serpentinised harzburgite. This geological setting features flanking ferruginous sandy sediments with interbedded coal beds from the Cienaga de Oro Formation.
