8th May 2023 16:10
(Alliance News) - South32 Ltd said on Monday its Hermosa project reached a milestone after a US government agency confirmed that it is a critical infrastructure project.
The Hermosa project, located in Arizona, US, is made up of the Taylor and Clark deposits.
The Perth-based diversified mining group said the US Federal Permitting Improvement Steering Council, an independent federal agency, has added Hermosa as the first mining project to the FAST-41 process, meaning it is the only advanced project in the US that could supply two federally designated critical minerals, zinc and manganese.
Construction and mine development at Hermosa can now start with approvals from the State of Arizona, the mining group said.
South32 expects to complete the feasibility study for its Taylor zinc-lead-silver deposit in the second half of 2023, as it undertakes additional engineering studies to align the mine development schedule for a federal permitting process and incorporate current market cost estimates.
Separately, the current phase of study work for its Clark battery-grade manganese deposit has confirmed its potential to supply battery-grade material to the rapidly forming North American electric vehicle supply chain.
"The inclusion of Hermosa as the first mining project added to the FAST-41 process is an important milestone that recognises the project’s potential to strengthen the domestic supply of critical minerals in the US," South32 Chief Executive Graham Kerr said.
"Hermosa presents a significant opportunity to sustainably produce commodities critical to a low-carbon future," Kerr added.
Shares in South32 rose 1.7% to ZAR52.18 on Monday afternoon in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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