July 7 (Reuters) - Australian diversified miner South32 (S32.AX) , opens new tab 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.

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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 , opens new tab 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) , opens new tab, 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.

https://www.reuters.com/markets/commodities/australias-south32-take-130-million-hit-colombian-nickel-asset-sale-2025-07-07/