South32 pulls the trigger on R41bn zinc project in Arizona

Diversified miner South32 said on Thursday that it would proceed with a $2.16 billion (R41 billion) Hermosa zinc project in the US as it looks to bridge an expected supply gap for an industrial metal in high demand due to the drive towards decarbonisation.

"Once in production, [the Taylor zinc-lead-silver deposit] is expected to add an additional 8% to group production compared to financial 2023 levels, while sustainably lifting margins due to its first quartile cost position," South32 CEO Graham Kerr in a presentation on Thursday.

"The Taylor feasibility study confirmed its potential as one of the world's largest, lowest-cost producers of zinc, a critical commodity in the global energy transition that we expect would deliver value for our shareholders for decades to come."