Newly appointed CEO Matt Daley, on his first day in office on July 1, announced the sale of the company's aluminum value chain assets to Alcoa for up to $5.6 billion while clearly shifting the strategic focus entirely towards base metals including copper, zinc, lead, and silver.

Under the agreement, Alcoa will acquire South32's 86% interest in Worsley Alumina in Australia, 100% of Hillside Aluminium in South Africa, and bauxite, alumina refinery, and aluminum smelter interests in Brazil. The transaction includes $3.1 billion in upfront cash and $1 billion in Alcoa stock, with Alcoa also assuming approximately $1.2 billion in related asset restructuring provisions. The deal is expected to close in the second half of 2027, pending shareholder and regulatory approvals.

Daley stated that South32 aims for approximately 55% production growth over the coming years in zinc, lead, silver, and copper. “We are particularly optimistic about the structural outlook for these commodities, which we feel are strongly positioned for really strong years ahead,” Daley said in an interview with Mining Weekly.

On the copper front, South32 announced on the same day its participation in the fourth-stage grinding line expansion project at the Sierra Gorda mine in Chile. KGHM and South32 will jointly invest approximately $725 million (on a 100% basis) to increase ore processing capacity from roughly 48 million tonnes per year to about 60 million tonnes per year. The project is expected to be completed by the end of 2029, with production ramping up in the second half of 2030, lifting copper output by approximately 20%.

Following the aluminum divestment, approximately 85% of South32's adjusted profits are expected to come from base metals, with copper emerging as a core earnings pillar.

Regarding manganese, Daley clarified that manganese is not a growth area for South32. While the Wessels and Mamatwan manganese mines in South Africa are performing to plan, the Australian manganese operations face production challenges due to extreme rainfall and cyclones, with the company having downgraded production guidance at the end of the third quarter.

Outgoing CEO Graham Kerr, who stepped down on June 30, will continue to serve as a strategic advisor to support engagements related to the Alcoa transaction.

“During my time at Anglo American, I was in South Africa almost every month, and I deeply love the place and the people,” Daley said.