They'll hand back more than 175,000 hectares of prime conservation land they have held since 1971 to West Australia, ditching plans to build a bauxite mine and an alumina refinery in the area.
The U.S. miner said the sale is part of a strategy to divest non-core assets and focus on supplying iron ore pellets to the North American steel industry.
There are a number of challenges South32 is likely to face, including potential Black Economic Empowerment ownership concessions and power price hikes.
In this interview with The Mining Report, Richards discusses his outlook for oil, gold, vanadium, zinc and nickel, and profiles companies with projects that will see the light of day even in harsh price environments.