MELBOURNE, March 11, 2026, 11:00 AEDT
South32 Ltd plans to steer zinc from its proposed $2.16 billion Hermosa project in Arizona toward smelters in North America, skipping Chinese processors as the development clears a new permitting hurdle. “We will prioritize domestic and regional smelters,” said Pat Risner, president of South32 Hermosa, referring to production expected to begin later this decade. Bloomberg Law
Timing is key here: Washington wants to ramp up domestic critical-mineral supply. On March 4, Reuters reported the Pentagon reached out to mining firms, seeking help to shore up U.S. reserves of 13 essential minerals. South32’s plan to link Arizona mine production with processing in North America lines up with that strategy.
The U.S. Forest Service rolled out a draft Record of Decision for Hermosa on March 6, marking an early-stage federal green light. That came with the final environmental impact statement. The EPA’s database puts the review window open until April 20, and South32 is aiming for a July finish on the final decision, pending objections and a subsequent review.
Risner noted that South32 has a non-binding letter of intent in place with Teck Resources Ltd, setting up plans to send zinc to Teck’s Trail smelter in British Columbia. This arrangement gives the Australian miner at least one regional path for its zinc as it shifts focus from China. If the Arizona project proceeds, Teck—both a miner and a smelter operator—would become a crucial counterparty.
If the Forest Service signs off, South32 could move ahead with construction of the main access road, a dry-stack waste site, and a segment of the power line on Coronado National Forest property. Risner described the draft decision as the result of “years of listening, collaboration.” Hermosa’s environment and permitting director Brent Musslewhite called the review “grounded in science and public input.” Engineering News
South32 claims Hermosa might yield as many as five minerals on the federal critical list, running with roughly 90% less water compared to most local mines. Nearly 140 extra steps for conservation, mitigation, and monitoring are also part of the plan as the project edges closer to its final green light.
The situation isn’t settled yet. The federal review doesn’t wrap up until April 20, and the Forest Service first needs to sort through objections before making its final decision. That means there’s still potential for hold-ups or added restrictions, even if the project advances.
South32’s Hermosa push marks another step in the miner’s changing strategy. Back in February, the company announced plans to idle its Mozal aluminium smelter in Mozambique, citing a lack of affordable power. This move came even as first-half underlying earnings—excluding certain one-off items—jumped to $435 million, topping what analysts had expected. The Perth-based firm, which split from BHP in 2015, has been ramping up its focus on copper and zinc, with Hermosa now nearing a critical U.S. permitting phase.
Hermosa hasn’t kicked off production. The next key date is April 20—South32 maintains that after that, its Arizona project remains on schedule for a final federal decision in July.
