20 February 2024

South32 Hermosa Project in the Patagonia Mountains --- The Largest $2.16 Billion- Private Investment in Southern Arizona’s History

NEWS

Mining company South32 has decided to invest $2.16 billion in its Hermosa prospect in the Patagonia Mountains, pouring what it calls the largest private investment in southern Arizona’s history to produce zinc ore by 2027, executives announced on Wednesday.

The mine is in the once-abandoned mining district of Harshaw, where previous companies left behind significant deposits of zinc, manganese, lead and silver. Wednesday’s announcement means the Australian company’s board approved mining the zinc-lead-silver deposit, and will continue consideration of mining a large manganese deposit with the potential to provide that mineral for the growing market for electric vehicle batteries.

Briefs: County considers contractor for ‘good neighbor agreement’ with South32

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Santa Cruz County officials are considering hiring a contractor to craft a “good neighbor agreement” with South32 – the mining company behind the Hermosa Project in the Patagonia Mountains. 
  • The discussion, and a possible vote, was listed on a regular meeting agenda for Tuesday, Feb. 20.
  • According to the agenda, the county is mulling a contract with Stephanie Smith, a Tucson-based consultant.
  • “Smith is uniquely qualified to provide the services anticipated, boasting 27 years of experience that includes work in coordination, research, GIS analysis and project management,” County Manager Jesus Valdez wrote in a memo discussing the potential contract.
During a meeting last month, local residents and Hermosa Project President Pat Risner described ongoing efforts to craft a “good neighbor agreement” with South32 – a legally binding framework that could ensure accountability from the company in light of any potential health or environmental issues.
  • The county's contract would pay Smith $80 an hour to craft the agreement, with a maximum compensation of $80,000 per year. T
  • he money would come out of Santa Cruz County’s general fund, according to the agenda item. 
  • The agreement would last two years, with an optional one-year renewal.
  • According to the contract, Smith would be responsible for coordinating the agreement between Santa Cruz County and South32. 
  • Once the agreement is crafted, a legal team will examine the final draft.
The consultant will also engage with community stakeholders, topic and technical experts, federal and state agencies, NGOs, and the constituency of Santa Cruz County as part of this role,” the contract stated.

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