Australia's South32 to take $130 million hit on Colombian nickel asset sale (updated)

IGO

07/07/2025 01:30

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July 7 (Reuters) - Australian diversified miner South32 S32.AX said on Monday it will incur an impairment charge of $130 million related to the sale of its Cerro Matoso ferronickel operations in northern Colombia to a unit of global industrial group CoreX Holding B.V.

South32 expects to receive up to $100 million in cash payments from CoreX, a diversified industrial group with operations spanning metals and mining, green energy, and other sectors.

The miner launched a strategic review of Cerro Matoso in January 2024, citing a significant downturn in the nickel market.

Nickel producers are grappling with a sharp price collapse, fuelled by surging output from Indonesia, compelling some operators to reduce spending, write down investments and halt their mining activities.

South32's nickel production decreased by 6% in the nine-month period ended March 2025 due to lower planned nickel grades, and cited that structural changes in the nickel market continued to place pressure on nickel prices.

BHP Group BHP.AX, the world's largest-listed miner, said in July 2024 that it would suspend its Western Australia nickel operations from October, citing a plunge in prices and a global oversupply of the metal.

 (Reporting by Sherin Sunny in Bengaluru; Editing by Diane Craft and Sherry Jacob-Phillips)

 ((Sherin.Sunny@thomsonreuters.com;))