Nickel Downturn Prompts South32 Divestment, Veteran Investor Eyes Contrarian Opportunity

Australian miner South32 (NYSE:SOUHY) has agreed to sell its Cerro Matoso ferronickel mine in northern Colombia to an industrial conglomerate, CoreX Holding, in a deal valued at up to $100 million.

The agreement includes a nominal upfront payment, with additional payments tied to future nickel prices and production performance, as well as up to $20 million in permitting milestone bonuses over the next five years.

Cerro Matoso, located in Córdoba, Colombia, is one of the leading global open-pit ferronickel operations but has struggled amid the weakening market. South32 reported a 6% drop in nickel output in the nine months ending March 2025 due to lower planned grades. The firm will also record a $130 million impairment loss, which will be excluded from the company's underlying earnings.

"The deal supports our strategy to streamline the portfolio and focus on higher-margin commodities ...