What South32 Hermosa does

South32 Hermosa is an advanced underground mining project located in Southern Arizona's Patagonia Mountains, owned and operated by South32 Limited (ASX: S32), an Australian diversified miner spun off from BHP Billiton in 2015. The project is designed to produce five federally designated critical minerals — zinc, manganese, copper, silver, and lead — with an initial 28-year mine life on the zinc deposit and an estimated $3.3 billion total capital deployment, the largest private investment in Southern Arizona history. Technology stack includes fully battery-electric underground equipment, automated ore handling with energy-efficient flotation cells (~30% less power), dry-stack tailings storage (one of the first new facilities of its kind in the U.S.), two water treatment plants with ~90% water recovery, and a dedicated remote operations center ("Centro") in Nogales, Arizona that enables 24/7 remote monitoring and semi-autonomous operation of underground equipment.

The project's commercial model is direct B2B sales of mined concentrates and processed metals to industrial customers — primarily battery manufacturers seeking domestic HPMSM-grade manganese, federal defense and national security agencies requiring strategic minerals, and infrastructure/construction firms needing zinc for galvanizing. Offtake is negotiated bilaterally and pricing is not publicly disclosed. As of the most recent input, Hermosa is still in the construction and pre-production phase following a $2.16 billion Final Investment Decision in 2024, a U.S. Forest Service Draft Record of Decision and Final EIS in 2025, and a $166 million U.S. Department of Energy grant in September 2024. Once fully operational, the project is projected to create ~900 direct family-sustaining jobs at average compensation of ~$90,000 annually (approximately 2x the Santa Cruz County household income average), plus ~2,381 indirect jobs, with an estimated $936 million annual contribution to the Arizona economy.

The Hermosa project occupies a structurally unique position in the U.S. critical-minerals landscape: it is the only advanced mine development project in the United States producing both zinc and manganese (the U.S. has not produced manganese ore since the 1970s), the first mining project included in the federal FAST-41 permitting process, and is described as the only major zinc discovery globally in the past decade. South32 holds a 19.9% equity stake in American Eagle Gold Corp alongside Teck Resources, signaling an external exploration stake in addition to the wholly-owned Arizona asset.

Name

South32 Hermosa

Legal name

South32

Website

https://south32hermosa.com

Company type

Public

Founded year

2015

Operating status

Operating

Headcount range

101–250 employees

Short description

South32 Hermosa is an advanced underground mine in Southern Arizona developing five federally designated critical minerals — zinc, manganese, copper, silver, and lead — using battery-electric equipment, dry-stack tailings, and a remote operations center, targeting battery, defense, and infrastructure customers.

Ownership category

akta.pro rank

Product category

Critical Minerals Mining

NAICS

Copper, Nickel, Lead, and Zinc Mining (212230), Other Metal Ore Mining (212290)

SIC

Metal Mining (1000), Miscellaneous Metal Ores (1090)

akta.pro primary industry

Exploration & Resource Development (Critical Minerals) (IMAKAFAL)

akta.pro secondary industry

Sizing & Classification (Screening, Cyclones & Air Classification) (IMAKALAB)

Keywords

• Underground zinc mining
• Manganese ore extraction
• Critical minerals production
• Battery-grade minerals supply
• Automated mining operations

Headquarters

HQ city

Patagonia

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Infrastructure, Personnel, Operations, Technology or R&D

Revenue model

1. Critical Minerals Sales: Revenue from selling extracted critical minerals including zinc, manganese, copper, silver, and lead to industrial customers, clean energy sector, and potentially government agencies.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

South32 Hermosa is an advanced underground mining project in Southern Arizona that extracts and processes five federally designated critical minerals — zinc, manganese, copper, silver, and lead. The project integrates modern mining infrastructure (main shaft, ventilation shaft, manganese exploration decline) with processing facilities (zinc processing, core processing, tailings filtration, dry-stack tailings storage), two water treatment plants, and a remote operations center (Centro) in Nogales that enables automated, lower-emission mining. Output is sold B2B to industrial customers, battery manufacturers, defense agencies, and infrastructure companies through negotiated offtake agreements.

Product overview

South32 Hermosa is a next-generation critical minerals mining project comprising an integrated system of underground mining operations and processing facilities. The core offering is the Hermosa Project itself—an advanced underground mine producing five federally designated critical minerals: zinc, manganese, copper, silver, and lead. Supporting infrastructure includes the Zinc Processing Facility for ore processing, Core Processing Facility for geological analysis, Water Treatment Plants (WTP1 and WTP2) for environmental management, Tailings Filtration and Paste Plants and Dry-Stack Tailings Storage Facility for waste management, and Centro—the remote operations center enabling automated monitoring and control. Key mining infrastructure includes the Main Shaft and Ventilation Shaft for underground access, and the Manganese Exploration Decline for deposit access. The project integrates advanced automation technology for remote operations, positioning it as a modern mining development.

Differentiator

Problem solved

Functional benefit

Products and services

• Zinc concentrate from the Hermosa project Zinc concentrate produced from the underground zinc deposit at Hermosa using energy-efficient flotation cells (~30% less power) and ~90% water recovery. Sold to industrial customers, infrastructure and construction markets, defense, and battery-related buyers through negotiated offtake agreements.
• Battery-grade manganese (HPMSM) from the Hermosa manganese deposit High-purity manganese sulfate monohydrate (HPMSM) and battery-grade manganese chemicals targeted at domestic battery manufacturers, with the deposit positioned as the lowest carbon-impact manganese chemicals project in North America.
• Copper concentrate from the Hermosa copper deposit Copper from the adjacent copper deposit at Hermosa with high-grade intersections, intended to supply electrical infrastructure markets; accessible via the project's planned underground infrastructure.
• Silver and lead by-products from the Hermosa zinc deposit Silver and lead recovered as by-products of zinc mining at Hermosa, supplied to electronics, solar, and industrial markets.
• Hermosa Zinc Processing Facility Underground crushing and ore processing facility using sealed transport, energy-efficient flotation cells (~30% less power, 40% less space), real-time monitoring, and ~90% water recovery to produce zinc concentrate.
• Centro Remote Operations Center A modern remote operations center on a ten-acre complex in Nogales enabling advanced automation to remotely monitor and operate underground and surface equipment, supporting safer, lower-emission mining and housing ~200 full-time employees across multiple shifts.

Quantifiable outcome

• Zinc supply-demand gap of 4 million tonnes projected by 2033 globally
• +4 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature5 records

Partnerships

Six partnerships are on record, tiered core and minor.

• University of ArizonacoreStrategic or Co-development PartnerSouth32 Hermosa has built coalitions with major mining companies including Freeport-McMoRan, South32 Hermosa, and Resolution Copper. The university expects increased federal funding for critical minerals research and is pursuing additional DOE grants for automated mining technologies.
• Pima Community CollegecoreStrategic or Co-development PartnerPartnership to bring Electrician Certificate program to Santa Cruz Center Provisional College District. This is the first workforce training program delivered specifically to train the local workforce for Hermosa operations.
• Nogales-Santa Cruz County Chamber of CommercecoreStrategic or Co-development PartnerPartnership to launch a Vendor Readiness Program supporting local businesses to become suppliers for the Hermosa project.
• RAH ArchitectsminorImplementation/ SI/ Consulting PartnerArchitectural partner for designing Centro, the remote operations center in Nogales. Design incorporates Southern Arizona landscape and local community design elements.
• The Nature ConservancyminorStrategic or Co-development PartnerRepresented at the Centro groundbreaking ceremony as a community stakeholder organization.
• Santa Cruz County School Superintendent's OfficecoreStrategic or Co-development PartnerSouth32 provided $206,000 grant to fund five local educational programs including Technolochicas (STEM for middle school girls), Elementary Robotics, SCC Continuing Education Program, Literacy Bus, and Los Padres Home Visitation Program.

Scale indicators11 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Teck Resources: Major global zinc and copper producer with integrated mining and smelting operations. South32 co-invested alongside Teck in American Eagle Gold Corp., evidencing direct peer alignment; Teck's Red Dog and Antamina operations are directly comparable to Hermosa's planned zinc production.
• Boliden: Swedish integrated zinc and copper miner with underground operations across Scandinavia and Ireland. Operates both mines and smelters with strong focus on sustainability metrics — directly comparable multi-commodity base metals miner with similar ESG positioning.
• Eramet: French mining and metallurgical group with the world's largest manganese mining operations (Gabon) and growing nickel/battery materials business. Most directly comparable peer for Hermosa's planned battery-grade manganese (HPMSM) production, given Eramet's leadership in manganese chemicals for batteries.
• Lundin Mining: Mid-tier multi-asset copper and zinc producer with underground mining operations in the Americas (including Chile, Brazil) and Europe. Directly comparable to Hermosa in zinc/copper commodity mix and underground mining methodology.
• MMG Limited: Global base metals miner (majority owned by China Minmetals) operating the Las Bambas copper and Dugald River zinc mines. Closely comparable underground zinc/copper producer with multi-decade reserve life profile matching Hermosa's 28-year zinc mine life.
• Hudbay Minerals: Mid-tier copper and zinc producer with operations across the Americas (Arizona, Manitoba, Peru). Comparable scale, multi-commodity base metals exposure, and underground mining methodology with similar permitting and community engagement profile.
• Freeport-McMoRan: Major US copper and gold miner with extensive Arizona operations and long-standing presence in Southern Arizona. Explicitly mentioned as a partner in the dataset (University of Arizona mining coalition) and directly comparable as a US base metals operator with underground expertise.
• Hecla Mining: Largest US silver producer with significant lead and zinc byproduct credits from underground operations. Directly comparable as a US-focused underground base/precious metals miner with similar regulatory and community engagement profile in the western US.

Broad incumbents

• Glencore: The world's largest zinc producer with major manganese operations in South Africa and Australia. As the dominant incumbent in both zinc and manganese markets, Glencore sets the price and supply benchmark against which Hermosa's outputs will compete.

Emerging players

• Americas Gold and Silver: Mid-tier silver and zinc producer focused on Americas operations (Mexico, US). Smaller scale than Hermosa but directly comparable commodity mix (silver, zinc, lead) and underground mining methodology; offers peer benchmark for junior-to-mid cap base/precious metals operators.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights8 records

Customer concentration

• Xx.com/South32Hermosa
• Facebookfacebook.com/South32Hermosa
• LinkedInlinkedin.com/company/south32-hermosa

Revenue estimate

Valuation estimate

Number of profiles

Profiles19 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about South32 Hermosa