Investing.com-- Australian miner South32 Ltd (ASX: S32 ) said on Monday it had entered a binding agreement to sell its Cerro Matoso nickel mine to a unit of CoreX Holding for up to $100 million in cash.

South32 said the sale was following a strategic review of changes in the nickel market, and was aimed at further streamlining the company’s portfolio to shift focus towards metals and minerals critical in the green energy transaction.

South32 said the sale will result in an impairment expense of about $130 million in its fiscal year 2025 earnings.

South32 will use the proceeds of the sale to further its investment in copper and zinc.

The miner will receive up to $80 million in cash based on future production at Cerro Matoso and nickel prices. South32 will receive up to $20 million based on production milestones.

Shares of the firm rose 0.6% on Monday, outpacing a flat performance in the ASX 200 .