South32 Hermosa project wins $244m US government critical minerals funding
The White House’s scramble to secure critical minerals has played to mining giant South32’s strength, with the US government selecting its Hermosa project in Arizona for a $244m grant.
The White House’s scramble to secure critical minerals has played to Australian mining giant South32’s strength, with the US government selecting its Hermosa zinc and manganese project for a $US166m ($244m) grant.
South32 said its Hermosa project, located in a historic mining district in the Patagonia Mountains of southern Arizona, has been picked by the Department of Energy (DOE) for a grant deal from its Battery Materials Processing and Battery Manufacturing program.
The Hermosa project has huge potential for the US government to gain access to critical minerals given there has been no manganese ore mining in the US since the 1970s, and more than 95 per cent of the production of battery-grade manganese is in China.
While the development of the deposit at Hermosa is subject to further study, it represents a significant opportunity to establish a North American supply chain of battery-grade manganese, South32 said at the weekend.
On a cost-share basis, the DOE will provide 30 per cent of the cost of the manganese production facility, up to the grant award of $US166m.
Originally funded as part of the Bipartisan Infrastructure Law, the grant is part of a larger announcement of $US3bn in funding for critical projects that will meet the White House’s aspirations of maintaining a viable domestic battery materials supply chain.
“The DOE grant will help advance development of our state-of-the-art, commercial-scale battery-grade manganese production facility. This project has the potential to provide a reliable, lower carbon and cost-effective domestic option for manganese products within the electric vehicle battery supply chain that currently relies entirely on foreign imports,” said Pat Risner, president of South32 Hermosa.
South32 will invest more than $30m in workforce development, prioritisation of local procurement, support for community organisations, and tribal engagement and education efforts.
“This grant highlights how important Hermosa and Santa Cruz County are to boosting America’s energy security in a way that creates economic opportunities across southern Arizona,” added Mr Risner. “Hermosa’s planned, state-of-the-art manganese production facility can help us safely onshore development of a critical mineral.”
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