Australian mining company South32 has given the green light for a significant investment in the Hermosa project's Taylor deposit in Arizona, USA. The company has approved a whopping $2.16 billion investment, marking a significant milestone in the development of this world-class mineral resource.
The decision to invest in the Taylor deposit aligns with South32's strategy to secure high-quality assets with long-term growth potential. The Hermosa project, located in Santa Cruz County, Arizona, has been recognized for its vast mineral potential, particularly in zinc, lead, and silver. The Taylor deposit, in particular, has been identified as a significant resource within the project.
The investment will be utilized to fund the underground development of the Taylor deposit, including the construction of a new processing plant and supporting infrastructure. The project is expected to create a substantial number of jobs in the region, driving economic growth and benefiting the local community.
South32's Group Chief Executive Officer, Graham Kerr, expressed enthusiasm about the investment, stating that the Taylor deposit offers compelling value and aligns with the company's commitment to responsible and sustainable mining practices. He further added that this investment underscores South32's dedication to capital discipline and its goal of delivering long-term value to shareholders.
The decision to move forward with the Hermosa project has been based on extensive exploration and analysis, which has revealed the deposit's potential to become a low-cost, long-life operation. The Taylor deposit alone is estimated to have an annual production capacity of around 170,000 tonnes of zinc, 50,000 tonnes of lead, and six million ounces of silver.
Furthermore, the Hermosa project has received strong support from the local community, with South32 actively engaging with stakeholders to address environmental and social considerations. The company has emphasized its commitment to responsible development, aiming to minimize the impact on the environment and ensure effective management of resources.
To facilitate the development of the Taylor deposit and the wider Hermosa project, South32 has also entered into a partnership with Arizona Mining, the owner of the mineral rights. The partnership will leverage South32's expertise in mining operations and its strong commitment to sustainability.
The approval of this substantial investment demonstrates South32's confidence in the potential of the Hermosa project's Taylor deposit. The company's commitment to responsible and sustainable mining, coupled with its strategic approach to securing high-quality assets, positions it well for long-term success. As the project moves forward, it is expected to contribute to economic growth in the region, create employment opportunities, and generate substantial returns for South32 and its stakeholders.
