South32 has announced a significant $2.16 billion investment to advance its Hermosa project in Arizona, marking a pivotal development for the United States’ mining sector. This project, distinguished as the only advanced U.S. mining venture capable of producing zinc and manganese—two minerals deemed critical by the federal government—has received unanimous board approval for funding to develop its zinc-lead-silver deposit.
This investment stands as the largest private contribution to southern Arizona’s economy and is nearly nine times greater than any previous investment in Santa Cruz county, according to the Australian mining giant. The move underscores South32’s strategic intent to pivot its portfolio towards commodities essential for a sustainable, low-carbon future.
Graham Kerr, CEO of South32, emphasized the project’s alignment with the company’s objective to support the domestic supply chain of critical minerals, thereby enhancing America’s energy independence and bolstering national defense capabilities. Pat Risner, president of the Hermosa project, highlighted the project’s transformative potential for the local economy and its contribution to reducing reliance on foreign mineral sources.
Designed to have a minimal environmental footprint, the Hermosa project is set on just over 600 acres and is expected to use approximately 75% less water than other regional mining operations. The new funding will be directed towards constructing essential infrastructure, including water management systems, power facilities, and site facilities, as well as initiating underground development and shaft sinking necessary for commencing operations.
South32’s investment also lays the groundwork for the potential future development of other deposits within the site, notably the battery-grade manganese deposit. Construction and mine development, focusing initially on the Taylor (zinc-lead-silver) and Clark (zinc-manganese-silver) deposits, commenced last year following approval from the State of Arizona. 
