Australia-based mining and metals company South32 has announced $2.16bn funding to develop the zinc-lead-silver deposit at its Hermosa project site in Southern Arizona.
Hermosa project is a polymetallic development comprised of a zinc-lead-silver sulfide deposit, located in a historic mining district in the Patagonia Mountains of Southern Arizona.
It is a battery-grade manganese deposit and an extensive, highly prospective land package with the potential for further polymetallic and copper mineralisation.
Hermosa is the only US mining project that can produce two federally designated critical minerals, zinc, and manganese, and can be one of the world’s largest zinc producers.
Also, it is the first critical minerals mining project added to the US FAST-41 permitting process.
South32’s funding represents the largest private investment in Southern Arizona and the largest investment in the local Santa Cruz County economy to date.
It will be used to fund the construction of key infrastructure projects needed to implement the design and works required to begin operations around the zinc deposit.
The infrastructure projects include water management systems, power, site facilities, underground shaft sinking, and initial underground development, among others.
Once completed, the infrastructure would support future potential development of other deposits at the site, including the battery-grade manganese deposit.
South32 chief executive officer Graham Kerr said: “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.
“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.”
Hermosa project president Pat Risner said: “With the largest private investment in Southern Arizona’s history, South32’s Hermosa project will strengthen the domestic supply of critical minerals needed for clean energy technologies and national defence, reducing America’s reliance on foreign countries and transforming the local economy.”
Zinc is used in renewable energy battery storage, wind turbines and electric vehicles, as a key component in the process to galvanise steel used needed for infrastructure projects.
The feasibility study for Hermosa’s zinc-lead-silver deposit showed an expected initial operating life for the mine of around 28 years with potential for further exploration upside.
Once operational, the project with separate zinc and manganese deposits would help transform and grow the local economy in the US.
It will create up to 900 good-paying jobs and support another 1,600 indirect and induced jobs across Santa Cruz County and 3,100 indirect and induced jobs statewide.
The zinc-lead-silver project will $1.4bn to Arizona’s economy each year, with $999m going directly into Santa Cruz County’s economy.
