South32’s Hermosa project wins fast-track US approval

South32’s Hermosa manganese and zinc project has achieved a key approval process after it was added to a US legislation aimed at promoting faster development of clean energy assets.

The Perth headquartered company on Tuesday said the project, located in Southern Arizona, was the only advanced mine development project in the US that could produce two federally designated critical minerals, manganese and zinc, which are essential to power the world’s clean energy future.

The project is now on the US Federal Permitting Improvement Steering Council’s FAST-41 process, which will support federal permitting of South32’s proposed development of its Taylor zinc and Clark manganese deposits at Hermosa.

South32 expects to complete a feasibility study for Taylor in the second half of 2023, as it undertakes additional engineering studies to align the mine development schedule for a federal permitting process under FAST-41 and incorporate current market cost estimates.

South32 chief executive Graham Kerr said the inclusion of Hermosa to the FAST-41 process was an important milestone which recognised the project’s potential to strengthen the domestic supply of critical minerals in the US.

“Hermosa presents a significant opportunity to sustainably produce commodities critical to a low-carbon future,” he said in an ASX announcement.