South32’s deal to sell the bulk of its aluminium and alumina assets to Alcoa for $US5.6 billion plus $US1.2 billion in rehabilitation costs (for a total of almost $9.9 billion) has more plot twists than your average thriller.
There’s the big pivot the transaction represents for South32, which is betting that selling the division that accounted for almost 40 per cent of its earnings will transform it into a higher-margin, higher-growth miner with copper – that crucial fuel for the artificial intelligence boom – at its heart.
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