South32 to divest majority of aluminum assets to Alcoa in $5.6 billion deal
2026-07-01 10:46:30 [Print]
Australian mining giant South32 has agreed to divest nearly all of its aluminum operations to U.S.-based Alcoa in a transaction valued at up to $5.6 billion. The Perth-headquartered company announced on Wednesday that it had entered into a binding conditional agreement to sell the bulk of its global aluminum business, which includes an 86% interest in Worsley Alumina, full ownership of Hillside Aluminium in South Africa, and a portfolio of Brazilian assets comprising a 33% stake in the MRN bauxite mine, a 36% interest in an alumina refinery, and a 40% share in an aluminum smelter.
Excluded from the deal is the Mozal Aluminium operation in Mozambique, which remains under care and maintenance, though South32 noted that its sale is still under active consideration.
Under the terms of the agreement, Alcoa will make an initial cash payment of $3.1 billion and issue $1 billion in stock, equivalent to approximately 6% of its outstanding share capital. Additionally, the U.S. aluminum producer will assume roughly $750 million in liabilities tied to the acquired assets, with a potential further $750 million contingent payment linked to future aluminum prices through 2030.
South32 stated that the divestment will enable the company to streamline its operations, allowing it to concentrate on its "high-margin copper, zinc, silver and lead operations" while preserving its standing as a major manganese producer. Alcoa, meanwhile, already operates seven mines globally, including Australia's Huntly mine-the world's largest bauxite mine.
Excluded from the deal is the Mozal Aluminium operation in Mozambique, which remains under care and maintenance, though South32 noted that its sale is still under active consideration.
Under the terms of the agreement, Alcoa will make an initial cash payment of $3.1 billion and issue $1 billion in stock, equivalent to approximately 6% of its outstanding share capital. Additionally, the U.S. aluminum producer will assume roughly $750 million in liabilities tied to the acquired assets, with a potential further $750 million contingent payment linked to future aluminum prices through 2030.
South32 stated that the divestment will enable the company to streamline its operations, allowing it to concentrate on its "high-margin copper, zinc, silver and lead operations" while preserving its standing as a major manganese producer. Alcoa, meanwhile, already operates seven mines globally, including Australia's Huntly mine-the world's largest bauxite mine.
Alumina 98.5%min EXW Shanxi
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China alumina producers' operating rate statistics by province by month
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