The U.S. Forest Service has approved South32's Hermosa zinc, silver and manganese project in southern Arizona, supporting efforts by the Trump administration to boost domestic minerals production.

The Forest Service issued the final record of decision for the Hermosa project on Tuesday, concluding the environmental review process required for infrastructure development on public land.

"The Hermosa Critical Minerals Project shows how increasing domestic production can reduce our dependence on vulnerable foreign sources, and power modern industries, advanced technologies, and essential infrastructure," U.S. Agriculture Secretary Brooke Rollins said.

While the project is primarily located on private land, planned infrastructure--including an access road, a mine-waste facility and a portion of a power line--crosses into the Coronado National Forest.

Coronado National Forest Supervisor Kerwin Dewberry said next steps for the project include submitting financial assurance and the final mine plan. Final authorization is scheduled to be issued on Sept. 4, he said.

For South32, the project reflects a pivot toward commodities it views as essential for low-carbon technologies. Hermosa has the potential to produce critical minerals for several decades, the company said.

The project has faced setbacks. In April, the company said its first development at the Hermosa project, called Taylor, would take longer and cost more to build than it previously anticipated, due to inflation and contractor underperformance.

South32 now expects to spend about $3.30 billion on the Taylor development, compared with an initial estimate of about $2.16 billion.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 07, 2026 20:34 ET (00:34 GMT)

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