Can you introduce Hermosa?

Located in an historic mining district in the Patagonia Mountains of Southern Arizona, South32 is designing the Hermosa project, a mine with state-of-the-art technology, so that it is safer, more sustainable, and more advanced. Reducing greenhouse gas emissions and competing in the global clean energy economy will require major investments in America’s infrastructure and domestic supply chains. As the only advanced mine project in the US that could produce two federally designated critical minerals — manganese and zinc — Hermosa can help put Arizona in the driver’s seat of the clean energy race.

What milestones were achieved over the past 24 months?

The Hermosa project was designated as the first mining project under the federal government’s FAST-41 permitting program, meant to introduce more transparency and efficiency in the federal permitting process. South32’s board approved a US$2.16 billion final investment decision to develop the Hermosa project’s zinc deposit – the largest private investment in Southern Arizona’s history. South32 announced the location of Centro, its remote operations center in Nogales, AZ. 

The environmental review process for the NEPA process began in May 2024 with the U.S. Forest Service completing its initial public comment scoping period. The Department of Defense awarded the Hermosa project a US$20 million grant under its Defense Production Act (DPA) battery grant program to help accelerate the domestic production of battery-grade manganese. Construction onsite has been ongoing, including work on both shafts with the continued construction of the headframes and hoisting facilities. Shaft sinking equipment has been installed in the shafts and work is advancing to begin sinking later this year. 

Can you describe the significance of FAST-41 and how it will help advance operations?

Permitting a mine in the US is no easy task. It takes years of development, study and analysis to navigate the complex permitting structure that can spread across multiple federal agencies and departments. The FAST-41 program is about streamlining that process for critical infrastructure projects that benefit the nation and making sure there are open lines of communication and transparency between all the stakeholders in the process. 

It is still a full and rigorous review, and we expect federal authorization for full development will take a little over two years. So far, we have hit all the permitting milestones for the project, and we are hopeful we can stay on that path. 

What socioeconomic impact will Hermosa have on the state of Arizona?

The Hermosa project is in one of the most economically disadvantaged counties in Arizona that has double the unemployment of the rest of the state and per capita incomes about 40% below the state average. So having this quite unique resource of manganese and zinc that can support efforts to address climate change and create jobs and economic opportunity in what has been a historically disadvantaged community in the process is what makes it such a great opportunity.

Not only will the project provide upwards of 900 jobs, we are also investing in the community, partnering with the community on workforce development initiatives, building strong relationships to ensure transparency and cultural preservation. Our goal is to develop a homegrown workforce with the skills needed to operate the Hermosa project and support our broader community for generations to come by prioritizing local hiring.

How will Hermosa create the foundation for a critical mineral domestic supply chain? 

There has been no manganese ore mining in the US since the 1970s, and the US is now 100% reliant on foreign sources for manganese. The Hermosa project can help fill that void.

In recognition of its importance to national security, the US Department of Defense awarded a US$20 million grant in May under the Defense Production Act (DPA) battery grant program to help accelerate the domestic production of battery-grade manganese. In 2023, the Hermosa project earned the designation as the first critical mineral mining project under the federal government’s FAST-41 permitting program, meant to introduce more transparency and efficiency in the federal permitting process. 

It is an American resource that can create a short, local, domestic supply chain and in doing so create jobs in a community that has been historically economically disadvantaged.