Administration Greenlights South32’s Manganese and Zinc Mine

The administration has signed off on mining and metals company South32 Ltd.’s zinc and manganese mine in Arizona (Bloomberg Government, subscription).

What’s going on: On Tuesday, the U.S. Department of Agriculture’s Forest Service issued the final record of decision for the $2 billion Hermosa Critical Minerals Project in Santa Cruz County near the U.S.–Mexico border.

• The project, which “contains one of the world’s largest undeveloped zinc deposits as well as other key minerals essential for steel and the production of large-capacity batteries,” is the only large underground mine now under construction in the U.S. to mine two federally designated critical minerals simultaneously (ChemNet).

Fast-tracked: The Hermosa mine is also the first such project to be expedited by the Department of Agriculture under the Fixing America’s Surface Transportation Act of 2015, or FAST-41.

• The news comes just over two years after the Department of Defense awarded South32 $20 million for the Hermosa Project under the Defense Production Act Investment program (South32).

Why it’s important: Manganese and zinc are crucial to the energy and defense sectors, and domestic production of the minerals reduces U.S. dependence on foreign sources, the NAM said.

• “Manufacturers celebrate … South32 Hermosa securing this federal permit in just two years under FAST-41,” NAM President and CEO Jay Timmons said on Tuesday.
• “Manganese and zinc are two important critical minerals for manufacturers and key to strengthening domestic supply chains, boosting American production and reducing reliance on foreign sources. This is how permitting should work: timely, predictable and focused on moving projects of national importance from review to reality.”