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Green metals blowouts top $6b as South32 slashes flagship project

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Key Points

  • The writedown is at odds with Rio Tinto and Northern Star commentary that inflation is easing.
  • Hermosa is one of two major developments South32 has in North America.

The ASX’s critical minerals producers are facing a blow-out in costs as the challenging geology of extracting green metals comes up against high prices for labour, utilities and services, destroying more than $6 billion in shareholder value.

Investors say the lack of discipline around costs will make boards reluctant to invest in projects targeted at decarbonisation at a time when the world faces a shortage of minerals essential to the energy transition.

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    Original URL: https://www.afr.com/companies/mining/miner-south32-wipes-1-9b-from-value-of-us-mine-20230724-p5dqol