Australian mining company, South32 (ASX: S32 | LON: S32) is set to invest US$2.16B to develop the Hermosa project in Arizona, currently the only advanced US mining project with the capacity to produce zinc and manganese — two federally designated critical minerals.
“Today’s investment decision represents a major milestone for our business and aligns with our strategy to reshape our portfolio toward commodities critical to a low-carbon future,” said CEO Graham Kerr.
“Development of the zinc deposit is the first phase of a regional scale opportunity at Hermosa, with ongoing activities to unlock additional value from the manganese deposit.”
The financing represents the largest private investment in southern Arizona’s history, and the largest investment into Santa Cruz county to date by nine-fold, the Australian miner said.
Last year, the Hermosa project became the first to be added to the Unites States’ FAST-41 permitting process, and the company claims it has the potential to become a leading global zinc producer.
With a surface footprint of just over 600 acres, and a projected usage of 75% less water than its peers, the operation has also been designed to minimize its environmental impact.
Hermosa is embracing sustainability and advanced technology in its next-generation underground mine design, using automation and technology to drive efficiencies and lower its operational greenhouse gas emissions.
The investment will be allocated to the construction of a host of key infrastructure projects needed including water management systems, site facilities, underground shaft sinking, initial underground development, power, and other work required to commence operations at the deposit.
The production of zinc would unlock new opportunities for southern Arizona. The Hermosa project, across its separate zinc and manganese deposits, would also bolster the local economy, leading to 900 stable jobs.
Global zinc demand is forecast to overtake production by approximately 3Mt in 2023 since the metal is used in renewable energy battery storage, wind turbines, and electric vehicles, and is a key component in the process to galvanize steel for infrastructure, with only 6% of zinc currently produced in the US.
Hermosa’s project president Pat Risner said, “South32’s Hermosa project will strengthen the domestic supply of critical minerals needed for clean energy technologies and national defense, reducing America’s reliance on foreign countries, and transforming the local economy,” alleging it “a win for Arizona and the nation.”
