South32 says it has entered into a binding agreement to sell Cerro Matoso, in Colombia, to a subsidiary of CoreX Holding for more than $100 million.

Cerro Matoso is an open-pit mine and smelter producing ferronickel, located in Cordoba, Colombia, with the transaction following 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,” Graham Kerr, South32 Chief Executive Officer, 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.

“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 will pay nominal consideration and assume economic and operating control of Cerro Matoso1, including all current and future liabilities. It will then make future cash payments of up to $100 million, as follows:

• Up to $80 million of price-linked consideration based on future production and nickel prices; and
• Up to $20 million, in four equal payments, based on permitting milestones within the next five years for the Queresas & Porvenir North project.

CoreX is a vertically integrated, global industrial conglomerate established in 2024 by Robert Yüksel Yildirim. It operates across metals & mining, ports & terminals, green energy, shipping & logistics, infrastructure & construction, chemicals, international trading, financial investments and venture capital.

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 2025, subject to these conditions.