South32 Wins Approval for $2B Arizona Zinc-Silver Project

South32 received approval from the U.S. Forest Service for its Hermosa zinc-silver project in Arizona, the company said Tuesday. The approval covers the surface management plan for the $2 billion development, one of the largest undeveloped zinc deposits in the world.

The project was granted fast-track permitting status under the Trump administration. That status shortened the environmental review process. The Hermosa site, near Patagonia, Arizona, contains both zinc and silver resources.

Zinc is a critical mineral used in galvanizing steel and in battery production. The U.S. imports most of its zinc. South32 has said the Hermosa mine could supply a significant portion of domestic demand. The project is expected to create hundreds of construction jobs and hundreds of permanent mining jobs.

Silver from the mine could support the growing solar manufacturing sector, which relies on silver for photovoltaic cells. The Forest Service approval is the latest federal hurdle cleared. State-level permits are already in place.

The approval fits into a broader U.S. push to secure domestic supply chains for critical minerals. The Hermosa project is one of the most advanced large-scale zinc developments in the country. South32 has not given a firm timeline for construction start but has said the project is shovel-ready subject to final permits.