South32 to get final US clearance for Hermosa mine
- The US government is set to greenlight the development of the multi-billion-dollar Hermosa critical minerals mine near the Mexican border.
- The federal fast-track permitting process is set to conclude with a formal record of decision from the United States Department of Agriculture.
- The facility will target domestic supply lines for essential steel and large-capacity battery manufacturing components.
The United States Department of Agriculture is set to get approval for the development of the US$3.3 billion Hermosa zinc and manganese mine in Arizona by diversified miner South32 (ASX:S32).
The upcoming decision marks a milestone as the first mining development to clear the accelerated federal evaluation gauntlet under the steering council's fast-track permitting programme.
“The Hermosa Critical Minerals Project shows how increasing domestic production can reduce our dependence on vulnerable foreign sources and power modern industries, advanced technologies, and essential infrastructure,” said United States Agriculture Secretary Brooke Rollins.
The company recently adjusted its expected capital expenditure for the project up to US2 billion due to rising inflationary pressures and construction delays.
The company stated that the site is expected to achieve first production during the second half of the 2028 fiscal year, with full nameplate operating capacity projected to follow by 2031.
Following the announcement, the South32 share price was unchanged at $4.16.
The company holds a broad global operating footprint across aluminium, copper, lead, and silver, while looking to further diversify its commodity portfolio away from older carbon-intensive resource assets.
