AUSTRALIAN diversified miner South32 has announced it will incur an impairment charge of $130m related to the sale of its Cerro Matoso ferronickel operations in northern Colombia to a unit of global industrial group CoreX Holding.
The company expects to receive up to $100m in cash payments from CoreX, a diversified industrial group with operations spanning metals and mining, green energy, and other sectors, said Reuters on Monday.
South32 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.
The miner’s nickel production decreased by 6% in the nine-month period ended March 2025 due to lower planned nickel grades. South32 cited that structural changes in the nickel market continued to place pressure on nickel prices.
The nickel industry has been severely impacted by oversupply concerns, with major players forced to restructure operations. BHP Group, the world’s largest-listed miner, announced 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.
The sale reflects the broader challenges facing nickel producers as they navigate an increasingly difficult market environment driven by Indonesian production growth and subsequent price pressures.
