This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Feb. 29, 2024-- South32 Ltd. 's proposed sale of its Illawarra Metallurgical Coal (IMC) business bolsters the company's balance sheet and enhances its funding flexibility for growth. The Perth-based diversified miner will receive up to US$1.65 billion in several tranches: an initial US$1.05 billion as well as US$250 million payable in 2030. It may also receive a further US$350 million contingent consideration depending on certain performance hurdles. These funds should give the company significant flexibility as it pursues its ambition to expand its exposure to base metals, in particular development of the Hermosa resource in the U.S. state of Arizona. The IMC sale proceeds should enable South32 to
