South32 Announces Key Community Partnership and Hermosa Project Construction Milestones

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FOR IMMEDIATE RELEASE

December 10, 2024

South32’s Hermosa project today announced a series of project developments that highlight the company’s commitment to local workforce development and community partnerships.

South32 announced new details about an Electrician Certificate program in partnership with Santa Cruz Center Provisional College District and Pima Community College; a first look at the conceptual design renderings for Centro, Hermosa’s planned remote operations center in Nogales; local education initiatives; and construction that will help streamline access to the project construction site.

“Progress continues as South32 looks to help provide a sustainable, domestic source of critical minerals important to our nation’s energy security while creating job opportunities in Santa Cruz County,” said Pat Risner, President of South32 Hermosa. “Today’s announcement highlights key developments that reinforce our commitment to improving lives for generations to come for Santa Cruz County residents and help South32 keep its workforce and project development on schedule.”

Developing a Homegrown Workforce

South32 Hermosa’s Workforce Development Taskforce members have formed an educational program design and facilitation committee with an immediate focus of bringing Pima Community College’s Electrician Certificate program to Santa Cruz Center Provisional College District. The committee will utilize taskforce members’ collective expertise, while leveraging the partnership between the two colleges. 

Electricians are among the first jobs needed to build Hermosa but have some of the longest required educational programs. The need for employees with electrical skills is definitive and will not change based on equipment selection, infrastructure set-up, and other operational decisions.

“South32 is committed to developing a homegrown workforce needed to operate Hermosa and support our broader community by prioritizing local hiring,” said Skylie Estep, South32 Human Resources Director, North America. “We look forward to replicating these workforce training opportunities, which will help us meet our target of hiring 80 percent of the South32 Hermosa full-time operational employees from Santa Cruz County. These careers will provide labor income equal to two times the average household income in the county, while creating broader economic and educational benefits in the community.”

The taskforce will use the electrical program as a blueprint for future programs intended to equip Santa Cruz County residents with the technical skills needed for other skilled trade and operational careers.

Program enrollment will begin in September 2025. The program is open to more students than needed for Hermosa in the immediate term to create opportunities for further education and employment in other industries or sectors in the community.

Designing Centro with the Community’s Perspective and History in Mind

South32 and its architectural partner, RAH Architects, released the conceptual design for Centro, the remote operations center to be built in Nogales. While still in the early stages, release of the design is meant to help demonstrate that Centro is developed in alignment with South32’s commitment to partner with the community.

The prospective design renderings weave elements of the Southern Arizona landscape and the rich design history of the local community, taking inspiration from the Nogales Public Library and other landmarks. The end product: an initial design that nests into the horizon lines of the site and topography of the surrounding area.

“We are designing the Hermosa project with state-of-the-art technology to make it more accessible to individuals without mining experience, including extensive use of automation technology, with part of our operations running remotely at Centro in Nogales,” said Risner. “It’s our goal to make sure our partnership with Santa Cruz County permeates every aspect of how we design and build the facility so that the community is reflected in our work.”

Designed to be a commercial building with an office-like setting, Centro will accommodate our employees and the automation technology needed to remotely monitor and operate some of the underground and surface equipment located at the mine site.

Centro will host around 200 full-time employees for mine operations over several shifts in a 24-hour period as well as functional support staff. The facility will be part of a 10-acre complex that will also include a warehouse, an employee parking lot, a park-and-ride service area to take employees and contractors to our other sites, and a garden. Construction is expected to begin next year.

Investing in the Community to Expand Opportunities for Santa Cruz County Residents

South32 announced a grant of $206,000 to the Santa Cruz County School Superintendent’s Office to provide funding for five local educational programs that promote STEM and education access across the county. In total, South32 has provided over $2 million since 2018 to support educational resources in our schools. “School programs like Technolochicas and the Santa Cruz County Literacy Bus, that uplift our children with the technology skills and educational foundation needed to thrive in the 21st century and compete for good paying jobs, are important to promoting and enriching the well-being of our students and families,” said Santa Cruz County School Superintendent Alfredo Velásquez. “The vision to make these programs and others a reality would not have been possible without the continued support of South32 and their commitment to making a positive difference in our community.”

“This year’s donations align with our commitment to making a positive difference through shared value and investments in our community that help expand the skills and opportunities for residents of all ages in and around Santa Cruz County,” said Risner.

The five programs funded this year include:

  • Technolochicas Lift, an afterschool STEM education program for middle school-aged girls that connects them with successful Latinas from the field;
  • Elementary Robotics, an afterschool program teaching robot assembly, functions, and mechanics to students in grades 3-5;
  • SCC Continuing Education Program, a program that offers workforce training, high school equivalency, and second-language programs to adult learners;
  • The “Santa Cruzer” Literacy Bus, a mobile library for schools and institutions in underserved communities;
  • The Los Padres Home Visitation Program, a program supporting early childhood education services to 50 families across Santa Cruz County.

Advancing Project Safety Milestones

South32 has safely completed the Cross Creek Connector bridge following a 10-day construction period. The Connector is an access bridge and road that will allow the project to increase site transport while reducing traffic through Patagonia. The route will be used at reduced capacity until full use commences in early 2025.

“We understand how materials traveling to and from the Hermosa project site is a concern for the community, so we prioritized safely completing the Cross Creek Connector to allow Hermosa personnel and trucks to bypass the Town of Patagonia, providing greater safety and security for the community and our team,” said Andy Thompson, Hermosa Vice President of Project Delivery.

Following the $2.16 billion investment decision earlier this year, construction work continues on the infrastructure important to providing underground access to Hermosa’s zinc deposit, one of the world’s largest undeveloped resources of this federally designated critical mineral.

Hermosa’s underground mine design enables a project surface footprint of just 750 acres – a fraction of the footprint of other mining projects and a key example of South32’s commitment to sustainable development of the resources at the project site.

Both the ventilation shaft headframe and main shaft headframe (the structural frame that sits above ground supporting the hoists and cables used to move materials into and out of the shaft) have been completed. Hoisting ropes are currently being installed. This is a key activity to sinking the main shaft to planned depth as hoists are used to excavate the raw material and sinking winches are used to move the work deck.

Other important milestones include:

  • The ventilation shaft has begun sinking activities;
  • The installation of mechanical and electrical equipment at both shafts has been completed;
  • Decline construction for the manganese deposit has commenced and is approaching the 250-foot mark;
  • The engineering and fieldwork for the zinc processing facility is progressing as scheduled.

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About the South32 Hermosa project 

Located in a historic mining district in the Patagonia Mountains of Southern Arizona, South32’s Hermosa project is currently the only advanced mine development project in the United States that could produce two federally designated critical minerals — manganese and zinc — both of which are essential minerals for powering the nation’s clean energy future. Learn more at www.south32hermosa.com.

Hermosa is a polymetallic development comprised of a zinc-lead-silver sulfide deposit, a battery-grade manganese deposit and an extensive, highly prospective land package with the potential for further polymetallic and copper mineralization.

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