MELBOURNE, March 11, 2026, 11:00 AEDT
South32 Ltd is looking to send zinc from its planned $2.16 billion Hermosa mine in Arizona to North American smelters — plants that turn mined material into metal — rather than Chinese processors, as a fresh permitting milestone nudges the project closer to full approval. Pat Risner, president of South32 Hermosa, said the company would “prioritize” domestic and regional smelters once the mine begins producing later this decade. 1
The timing matters because Washington is pressing for more U.S. critical-mineral supply. Reuters reported on March 4 that the Pentagon had asked mining companies to help boost domestic supplies of 13 key minerals, and South32’s effort to pair Arizona mine output with North American processing capacity fits that push. 2
On March 6, the U.S. Forest Service issued a draft Record of Decision, a preliminary federal sign-off, alongside the final environmental impact statement for Hermosa. EPA records show the current review period runs through April 20, and South32 expects a final decision in July after the objection process and follow-up review are completed. 3
Risner said South32 has already struck a non-binding letter of intent with Teck Resources Ltd to send zinc to Teck’s Trail smelter in British Columbia, giving the Australian miner at least one regional outlet as it looks beyond China. That would make Teck, a fellow miner and smelter operator, a key counterparty if the Arizona project goes ahead. 1
If the Forest Service gives final clearance, South32 would be able to build a primary access road, a dry-stack mine waste storage facility and part of a power line on Coronado National Forest land. Risner said the draft decision reflected “years of listening, collaboration,” while Hermosa environment and permitting director Brent Musslewhite said the review was “grounded in science and public input.” 4
South32 says Hermosa could produce up to five federally designated critical minerals and operate with about 90% less water than many mines in the region. The company also says it has committed to nearly 140 additional conservation, mitigation and monitoring measures as it moves toward final approval. 5
But the path is not clear. The federal review remains open until April 20, and the Forest Service still has to work through objections before issuing a final ruling, leaving room for delay or tighter conditions even if the project keeps moving. 3
The Hermosa push fits a broader shift at South32. In February, the Perth-based miner said it would idle its Mozal aluminium smelter in Mozambique after failing to secure affordable power, even as first-half underlying earnings, which strip out some one-off items, rose to $435 million and beat analyst estimates. South32, spun out of BHP in 2015, is leaning harder into copper and zinc as Hermosa approaches a decisive U.S. permit stage. 6
Hermosa is not producing yet. The next hard marker is April 20, after which South32 still expects the Arizona project to move toward a final federal decision in July. 3
